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Usmanov Marifdjon Shakirovich, candidate of physical and mathematical sciences, self-employed researcher, of the National University of Uzbekistan named after Mirzo Ulugbek, E-mail: [email protected]
FORMATION OF ECONOMIC FOUNDATIONS OF CIVIL SOCIETY IN UZBEKISTAN AND ISSUES OF SUSTAINABLE DEVELOPMENT
Abstract: The issues of the formation of civil society and the provision of sustainable development are closely intertwined with each other, interrelated and interdependent. At the same time, civil society and sustainable development have many dimensions, among which the economic and environmental components are particularly prominent.
In this regard, one of the most urgent tasks remains to find answers to the questions of influence on the processes of civil society formation and sustainable development: small business and private entrepreneurship; formation of a favourable business and investment environment, etc. The experience of Uzbekistan shows that the development of small business and private entrepreneurship directly affects the formation and development of a middle class of owners in the country - the pillars of civil society. Keywords: civil society, favourable business and investment environment, small business, private entrepreneurship.
Each sovereign state has its own unique history and culture, economy, creating j obs, raising incomes and ensuring the well-
being of the population. Thus, today the share of small business in the GDP of Uzbekistan exceeds 56.9%, the number of people employed in the sphere of SBPE is more than 78.2% of the total number ofemployed in the economy. For comparison: in Italy these figures are 60% and 71%, Japan - 55% and 78%, Germany - 54.0% and 69.5%, the UK - 53% and 56%.
In this case, the number of SBPEs in the main industries -food, light, construction materials, mechanical engineering and metal processing, chemical and petrochemical, pharmaceutical has grown in recent years, which serves as a key factor for sustainable growth. In particular, in 2000-2016, the share of SBPE in agriculture increased from 73.6% to 98.2%, in construction - from 38.4% to 67.8%.
Thus, the role of SBPE in socio-economic development of the country, the formation of a middle class of owners, which is a reliable pillar of modernization and renovation of the country, ensuring stability and sustainable development of society increases every year. The growing number of entrepreneurs determines the dynamics and structure of the population's incomes: over the last decade, the real incomes of citizens from entrepreneurial activity in total household income have exceeded 50% of all incomes. In a word, the development of SBPE means not only strengthening the economy, increasing its competitiveness, but also, in the end, the well-being of the population.
Positive trends in this area have been achieved through the implementation of comprehensive measures to deepen market reforms and liberalize the economy, improve the business environment, promote competition and protect private property. Only in the last 1.5 years more than 300 most important laws, decrees and resolutions of the President, decisions of the country's government have been adopted.
the true originator and creator ofwhich are the people. This unshakable truth is vividly confirmed by the centuries-old history of Uzbekistan and the last period of its free development, the path of progress, the formation of a highly moral, enlightened, just civil society, ensuring a prosperous life for the population.
The study of the progress of reforms carried out in Uzbekistan within the framework of the Action strategy on five priority areas of the country's development for 2017-2021 (the Action strategy) shows the country's transition to the rails of sustainable development in all spheres - social, legal, humanitarian, economic, political, etc [1].
Thus, the economic component of sustainable development implies the termination of irrational use of environmental resources, a gradual transition to a model of ecologically balanced economic development, «a resource-saving and green economy», «knowledge of economy», «an information society» and etc [2]. At the same time, the Action strategy considers and solves many issues of sustainable development through the prism of creating a favorable business and investment climate, the development of small business and private entrepreneurship (SBPE).
The Action strategy defines as one of the most important tasks the continuation of institutional and structural reforms aimed at reducing the state's presence in the economy, stimulating the development of small business and private entrepreneurship, enhancing the role of this sector in increasing the economic power of the country, strengthening peace and stability, harmony in society [3].
It should be noted that the experience of Uzbekistan, as well as of many other countries, testifies that the SBPE sector is the most important factor in the sustainable development of the
On their basis, systemic measures are taken to drastically increase the role and place of private property in the national economy, reduce the state's presence in the economy, enhancing the role of SBPE in increasing the economic power of the country, strengthening peace and stability, harmony in society, implementation of the principles: «If people are rich the state will also be rich and strong» and «Creating obstacles to the development of entrepreneurship will be regarded as obstruction of state policy» [4].
First, the procedure is established, according to which the legal effect is applied to business entities only in a judicial procedure. It has been established that in their relations with government bodies of all levels, law enforcement and controlling bodies, commercial banks, the principle of priority of entrepreneurs' rights operates, in accordance with which all unavoidable contradictions and ambiguities of normative legal acts are interpreted in their favor.
Second, all types of unplanned and counter checks of the activity of business entities were abolished, also, the ban on planned tax inspections over activities of business entities for a period of three years from the moment of their registration was also imposed, and inspections of stable and diligent taxpayers were limited.
Since 2018, Uzbekistan has imposed a moratorium on inspections of financial and business activities of business entities, with the exception of inspections conducted in criminal cases and in connection with the liquidation of a legal entity. The order is fixed, according to which meetings with active business entities are held monthly by the heads of supervisory bodies headed by the General prosecutor to listen to their problems and take measures to identify and eliminate the shortcomings that interfere with their lawful activities [5].
Third, the "single window" institute is developing, the types of interactive public services are expanding, etc. Today these "one window" centers for the provision of public services have been transferred from the structure of hokimiyats districts (cities) to the Ministry ofJustice, which contributes to the creation of a unified system of state registration and registration of business entities in place of the previously disconnected system, as well as strengthening control over compliance with legislation about rendering of the state services to subjects of business.
Fourth, the transition from a licensing system to a state registration of business entities was implemented. The number of licensing procedures has been abolished, the number ofactivities subject to licensing has been reduced, the forms and frequency of submission of statistical, tax and financial reporting by state entities to business entities have been reduced by 1.5-2 times.
Fifth, a consistent humanization of the legislation regulating entrepreneurial activity is carried out. For example, it pro-
vides for the exemption from all types of liability of business entities and their employees who first committed offenses during financial and economic activities, as well as persons engaged in entrepreneurial activities without state registration, in case of compensation for damages caused to them and voluntary elimination of the consequences of offenses. A ban on the application of criminal punishment in relation to business entities in the form of deprivation of the right to engage in entrepreneurial activity was also established.
Sixth, the country implements measures to reduce the tax burden on business entities, to create a tax system that meets modern requirements, to introduce advanced methods of tax administration, to ensure its transparency, which will undoubtedly affect the sustainable development of the country's economy [6].
In particular, it is envisaged: introduction of such a modern form of tax control as tax monitoring; granting "tax holidays" to bona fide taxpayers - economic entities who faced with temporary financial difficulties; introduction of the judicial procedure for collecting the amount of taxes and other mandatory payments, identified by the results of desk control, etc.
According to the experts of the World Bank's Doing Business 2018, the level of tax burden on business entities in Uzbekistan is much lower than in the USA, Australia, Germany, Sweden, Turkey, China and Russia. It is emphasized that the functioning of single centers for rendering state services to business entities on the principle of "one window" facilitated transparency and expediency of licensing procedures and licensing, the introduction of electronic forms of interaction between state bodies, and a significant reduction in bureaucratic obstacles and financial expenses of applicants.
Seventh, special attention is paid to lending to small businesses. Over the past 10 years, the average annual growth rate of lending to the business sector amounted to 30% and as a whole grew 29 times, and microcredit indicators - 56 times. The loans allocated to small business entities are constantly growing from year to year.
Eighth, a new practice of post-privatization support of enterprises was introduced, including inactive ones, to assist them in creating new production capacities, and to develop and implement appropriate "road maps". The practice of transferring state property to business entities at a "zero" cost with the adoption of investment duties has been substantially expanded. In 2017, 509 facilities were transferred to entrepreneurs on these terms.
Ninth, comprehensive measures are being taken to liberalize foreign exchange policy, to form a currency market that operates solely on the basis of market mechanisms, to guarantee the free purchase and sale of foreign currency by legal entities and individuals [7].
In particular: individual entrepreneurs-producers and farmers have the right to freely dispose of their own foreign exchange earnings at their discretion and can withdraw cash from foreign currency from their bank accounts; the practice of compulsory sale of a part of foreign currency proceeds from export of goods (works, services) by enterprises-exporters was abolished etc.
According to the International Monetary Fund, the liberalization of foreign exchange policy will have a significant positive impact in the medium and long term on the rate of economic growth.
Tenth, systemic measures are taken to ensure effective dialogue and effective mechanisms for healthy partnership between the state and the business community, the introduction of a permanent channel for exchanging with them relevant information on improving the business environment, strengthening legal mechanisms for the inviolability of private property, and ensuring principle of priority of the rights of business entities.
For this purpose, the President's institution of the commissioner on protection of rights and legal interests of entrepreneurs was established to promote the introduction of new mechanisms for effective dialogue between business entities and state bodies, the creation of additional guarantees for state protection of the rights and legitimate interests ofbusiness entities [8]. It provides them with legal support in carrying out inspections oftheir activities, studies the practical implementation of the norms and requirements of adopted legislation, assesses the effectiveness of their impact on entrepreneurial activity, etc.
In addition, the priority tasks and activities of the Chamber of Commerce and Industry of the Republic of Uzbekistan were radically revised to introduce a new mechanism of legal protection, representation of interests and rights of business entities, improve the business environment and investment
climate, promote entrepreneurship, export domestic producers to foreign markets and etc. [9].
The Chamber established: Centers for the promotion of entrepreneurship (in each city and region of the country); the International Commercial Arbitration Court, designed to help ensure reliable protection of the rights and legitimate interests of foreign investors, as well as domestic companies in relations with foreign partners, etc.
In general, as a result of the measures taken in recent years, there has been a significant improvement in the relevant ratings of Uzbekistan, determined by authoritative international financial and economic structures. Thus, according to the World Bank's annual Doing Business 2018, Uzbekistan is ranked 74 among 190 economies and was among the top 10 reforming countries to create the most favorable conditions for doing business. The International Monetary Fund notes that Uzbekistan maintains economic stability in a difficult external economic situation, has maintained high economic growth for a long time, and an active investment policy and structural reforms reliably protect the country from the slowdown in the development of the economy that takes place in other CIS countries.
At the same time, we are convinced that the formation of a favorable business environment is not an end in itself, but the way to achieve the goal is to enter Uzbekistan into the number of developed countries, ensure sustainable development of the country, decent living conditions for the population. Implementation of the Action strategy measures will undoubtedly ensure the transition to a qualitatively new level of state policy in the sphere of further strengthening the legal protection of private property, creating favorable conditions for the dynamic development of small businesses and private entrepreneurship, and increasing the investment attractiveness of Uzbekistan.
References:
1. Mirziyoyev Sh. M. We will build a free, democratic and prospering state of Uzbekistan together with our courageous and magnanimous people. Address at the joint session of the Chambers of Oliy Majlis dedicated to a Solemn Ceremony of Assuming the Post of the President of the Republic of Uzbekistan // "Narodnoe Slovo" newspaper, December 16,- 2016.
2. Resolution of the UN General Assembly A/RES/70/1 of September 25,- 2015. "Transforming our world: the 2030 Agenda for Sustainable Development".
3. The decree of the President of the Republic of Uzbekistan dated 7.02.2017 "On action strategy on further developing of the Republic of Uzbekistan" - on the site lex.uz
4. Message of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis // "Narodnoe Slovo" newspaper, December 23,- 2017.
5. The decree of the President of the Republic of Uzbekistan dated 22.01.2018 "On organizational measures to draft a state program for implementation of the strategy for five priority development directions of the Republic of Uzbekistan in 2017-2021 in the Year of Support of Active Business, Innovative Ideas and Technologies" - on the site lex.uz
6. The decree of the President of the Republic of Uzbekistan dated July 18,- 2017. "On measures to radically improve tax administration, increase collection of taxes and other mandatory payments" - on the site lex.uz
7. The decree of the President of the Republic of Uzbekistan dated 5.10.2016. "On additional measures to ensure the accelerated development of entrepreneurial activity, comprehensive protection of private property and substantial improvement of business climate // Collection of the legislation of the Republic of Uzbekistan,- 2016.- No. 40.- 467 p.
8. The decree of the President of the Republic of Uzbekistan dated May 5,- 2017. "On the establishment of Institute of Ombudsman under the President of the Republic of Uzbekistan on protection of rights and legitimate interests of entrepreneurs" // Collection of the legislation of the Republic of Uzbekistan,- 2017.- No. 19.- 333 p.
9. The decree of the President of the Republic of Uzbekistan of 19.06.2017. "On measures to radically improve the system of state protection of legitimate business interests and further development of entrepreneurial activities" // Collected of the Legislation of the Republic of Uzbekistan,- 2017.- No. 25 (522).
