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PRACTICAL PROBLEMS ANO SOLUTIONS TO THE USE OF THEORETICAL LAWS IN THE SCIENCES OF THE 2IST CENTURY
tashkent, o-8 MAv 2004 www.in-academy.uz
COMPARATIVE ANALYSIS OF THE PROCESSES OF DIGITALIZATION OF THE ECONOMIES OF SOUTH KOREA AND TURKEY
Zarnigor Tairova
Assistant teacher, University of Tashkent for Applied Sciences, Gavhar Street 1, Tashkent 100149, Uzbekistan [email protected], ORCID ID: 0009-0008-8780-0444 https://doi.org/10.5281/zenodo.13348678 Abstract: The digitalization processes of South Korea and Turkey have both been significant, but they have some differences. South Korea has been a global leader in digitalization, with a highly advanced and tech-savvy economy. The country has invested heavily in infrastructure, research and development, and education to foster digital innovation. South Korea's government has also played a key role in promoting digitalization through policies and initiatives. On the other hand, Turkey has also been actively pursuing digitalization, but its progress has been influenced by different factors. Turkey has a large and young population, which has contributed to the rapid adoption of digital technologies. The government has implemented various programs to improve digital infrastructure and increase internet penetration across the country. However, compared to South Korea, Turkey's digitalization efforts may still be in earlier stages, with a focus on expanding access to digital services and promoting digital entrepreneurship. In summary, while both South Korea and Turkey have made strides in digitalization, South Korea stands out as a more advanced and mature digital economy, while Turkey's digitalization efforts may still be evolving.
Key words: ICT infrastructure, government initiatives, e-government, digital skills development, innovation ecosystems, start-up culture, internet penetration, mobile technology adoption, cybersecurity measures, economic impact, digitalization.
1 INTRODUCTION
The contemporary era of societal progress is marked by a swift shift from the industrial phase to the postindustrial stage of development. Currently, all countries worldwide are undergoing processes of digitization and subsequent digital transformation, albeit at varying speeds and levels of integration of the digital economy. Consequently, the digital economy forms the bedrock of the information society. Leading nations in digital transformation have already begun announcing a move towards a post-information society as a more advanced stage of socio-economic development. As of now, there is no universally accepted definition of the digital economy in the field of science.
In our view, an economy can be termed as digital when the predominant use of cutting-edge digital technologies, such as information and telecommunication systems, the internet, and other communication tools, along with corresponding software, drives the processes of production, distribution, exchange, and consumption of goods. A significant proportion of operations are conducted through digital platforms. The digital economy is reshaping people's mindset and culture, leading to a transition to a new set of values.
The development of the digital economy poses a complex and multi-faceted challenge, which, in contemporary circumstances, we believe the market is unable to address independently. Issues related to technological and innovative development are considered as traditional market failures. Businesses and the private sector lack incentives to invest in crucial components of scientific and technological progress, such as fundamental science, education, human capital development, and the establishment of ICT infrastructure. This is because these projects are linked
to public goods, have a lengthy payback period, or do not yield profits, as they are geared towards enhancing the overall welfare of society and creating conditions for the state's innovative development.
To steer economic development in this realm, governments currently widely employ strategic management mechanisms utilizing a program-targeted approach. Strategic goals for socio-economic development are outlined in the strategy, for which state or regional target programs are devised to facilitate implementation. The program serves as a detailed blueprint for executing the strategy, comprising a specific array of activities supported by available resources. Additionally, the program specifies the mechanisms for overseeing implementation and ensuring compliance.[1]
The program approach, which has gained widespread traction in the global arena for modernizing the economy and transitioning it to a digital foundation, offers the advantage of focusing on the development of a limited number of priority areas, rather than dispersing budgetary funds across a multitude of tasks without sufficient resources. The accomplishment of key developmental tasks yields a multiplier effect on other sectors, thereby reinforcing the impact of budgetary injections into the economy.
Today, Uzbekistan is not among the leaders in digital transformation. This signifies that it is essential for the Uzbek government to conduct research on the international experience of developing a digital economy using program-targeted methods and to apply it with adaptation to national peculiarities. Based on the International Digital Economy and Society Index (I-DESI) developed by the Directorate-General for Communications Networks, Content and Technology of the European Commission and published in 2022 (based
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PRACTICAL PROBLEMS AND SOLUTIONS TO THE USE OF THEORETICAL LAWS IN THE SCIENCES OF THE 21ST CENTURY
tashkent, o-8 mav 2004 www.in~academy.uz
on data from 2020), the Republic of Korea consistently ranks at the top of most digital indices.[2]
Therefore, this country has been singled out as an exemplary case for study. The Digital Evolution Scorecard, prepared by the Harvard Business Review and the Fletcher School at Tufts University in partnership with Mastercard, categorizes countries into four groups based on indicators of digitalization level and the pace of digital development: leaders, adopters, standbys, and beginners. According to data collected in 2020, South Korea is classified among the leaders, along with Singapore, Hong Kong, the United States, Germany, and Malaysia. Additionally, according to the Digital Evolution Index data for 2017, compiled by the Fletcher School at Tufts University, Norway, Sweden, Switzerland, Denmark, Finland, Singapore, South Korea, the United Kingdom, Hong Kong, and the United States are considered leaders. South Korea consistently holds top positions in digital rankings and individual digital development indicators.[3]
2 RESEARCH METHODOLOGY
The research methodology for the comparative analysis of the digitalization processes in the economies of South Korea and Turkey involves a comprehensive and systematic approach to gather, analyze, and interpret relevant data. The methodology is designed to provide a rigorous framework for comparing and contrasting the digitalization strategies, initiatives, and outcomes in both countries. The following outlines the key components of the research methodology:
Literature Review: The research begins with an extensive review of existing literature, scholarly articles, reports, and case studies related to the digitalization of economies, with a specific focus on South Korea and Turkey. This step aims to establish a solid understanding of the historical context, policy frameworks, technological advancements, and socioeconomic impacts of digitalization in both countries.
Data Collection: The research methodology involves the collection of primary and secondary data from reputable sources, including government publications, official statistics, industry reports, and academic research. Data related to ICT infrastructure, e-government initiatives, digital skills development, innovation ecosystems, internet penetration, mobile technology adoption, and cybersecurity measures will be gathered to provide a comprehensive overview of the digitalization landscape in South Korea and Turkey.
Comparative Framework: A comparative framework will be developed to systematically compare and analyze the digitalization processes in South Korea and Turkey. This framework will include key dimensions such as government initiatives, policy frameworks, technological advancements, regulatory environment, investment trends, and socioeconomic impacts. The aim is to identify similarities, differences, challenges, and best practices in the digitalization strategies of both countries.
Qualitative and Quantitative Analysis: The research methodology incorporates both qualitative and quantitative analysis techniques. Qualitative analysis involves the interpretation of policies, strategies, and case studies to understand the contextual nuances of digitalization in each country. Quantitative analysis includes statistical comparisons, trend analysis, and impact assessment to quantify the progress and outcomes of digitalization efforts.
Case Studies and Interviews: The research methodology includes the use of case studies and interviews with key stakeholders, policymakers, industry experts, and academic scholars in South Korea and Turkey. These case studies and interviews will provide valuable insights into the implementation of digitalization initiatives, challenges faced, and lessons learned from the perspectives of various stakeholders.
SWOT Analysis: A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis will be conducted to assess the internal and external factors influencing the digitalization processes in South Korea and Turkey. This analysis will help identify the competitive advantages, limitations, potential opportunities, and risks associated with each country's digitalization efforts.
Policy Implications and Recommendations: The research methodology will conclude with a critical assessment of the policy implications and recommendations for both countries based on the findings of the comparative analysis. These recommendations will aim to inform policymakers, businesses, and stakeholders on potential strategies to enhance digitalization efforts, address challenges, and capitalize on opportunities for economic growth and competitiveness.
In summary, the research methodology for the comparative analysis of the digitalization processes in the economies of South Korea and Turkey is designed to provide a robust and holistic understanding of the digitalization landscape in both countries, with the aim of identifying insights and actionable recommendations for informed decision-making and policy development.
3 ANALYSIS OF THE SUBJECT
In the 1990s, South Korea began developing its first innovative programs, which were based on the practice of adopting technologies from developed Western countries. In the 2000s, the country started making efforts to create its own innovative developments with the aim of extracting technological rent, and these objectives were reflected in the strategies for socioeconomic development. To achieve this, the Korean government carried out a reform of patent policy. As a result, progressive mechanisms for the protection and transfer of patent rights were established, which strengthened incentives for scientists to conduct research.
From 1990 to 2020, numerous state programs have been implemented in South Korea for the development of ICT infrastructure, the creation of an information society, the development of digital skills among the
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PRACTICAL PROBLEMS AND SOLUTIONS TO THE USE OF THEORETICAL LAWS IN THE SCIENCES OF THE 2IST CENTURY
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population, and the digital transformation of the economy. These programs are based on the overarching development strategy, containing detailed action plans that are reviewed annually by the government to account for changes in the external environment. Institutions for guiding the development of the digital economy and coordinating the actions of government bodies, businesses, and civil society have been established in South Korea.[4]
In 2017, a plan for implementing the national intelligent strategy, "Mid-term General Plan for Preparation for an Intelligent Information Society," was approved. In this plan, intelligent technologies are structured and divided into three levels: 1) data collection through mobile technologies and the Internet of Things, 2) processing big data using cloud technologies, and 3) the implementation of intelligent services using artificial intelligence and machine learning systems, which create new value based on the first and second levels. Information transfer between the levels is envisioned to be based on the application of next-generation mobile technologies.
The world's first smart city, Songdo, was created in South Korea, where the infrastructure is connected by a network of sensors, with investments totaling approximately 35 billion USD. In 2020, the President of South Korea introduced a new strategy for the socioeconomic development of the country until 2025, called the "Korean New Deal," which aims to create new engines of economic growth. The strategy declares a transition from an industrial society using fossil fuels and industrial technologies to a post-industrial stage based on the priority of a "green" economy, digital technologies, and enhancing social welfare.
The application of a program-targeted approach allowed the country to focus efforts on identifying and developing priority sectors of the economy in which it had competitive advantages. The domestic market was assessed as insufficient, so the development was oriented towards export industries. South Korea focuses on developments in biotechnology, optics and multimedia, as well as on the export of digital consumer electronics.
The main factors driving innovation in South Korea have been the development of the information and telecommunications sector through increased private and public investments using mechanisms of public-private partnerships, as well as the increased role of small and medium-sized innovative enterprises. The government's task was not only to establish ICT infrastructure for public use but also to encourage businesses to use it as a key production factor for developing new activities and applying innovative technologies, integrating digital tools into technological chains. As a result, the state created a system that facilitates the implementation of digital economy development programs by the private sector.
A significant factor in South Korea's digital success is the mindset of its citizens and the formation of a national culture based on the recognition of the value of
innovation for societal development. Thanks to educational policies and the widespread implementation of educational courses, the country has successfully bridged the digital divide in computer skills among different age groups of the population.
Thus, long-term state policy, the development of realistic strategies and programs for their implementation, in conjunction with state regulation, have created conditions for the digital transformation of South Korea's economy and propelled the country to become a global leader in this regard.
4 ANALYSIS AND RESULTS
In recent years, Turkey has actively moved towards digitizing its economy, paying particular attention to modernizing its digital infrastructure and developing e-government. These steps are aimed at improving access to information technology, enhancing the efficiency of government services, and promoting digital skills in society.
One of the key initiatives is the development and implementation of various programs aimed at facilitating the country's digital transformation. This includes creating infrastructure for digital platforms, improving the quality of internet connections, and expanding access to high-speed networks. Such measures contribute to the development of the digital economy and increase Turkey's competitiveness on the global stage.
Significant attention is also given to e-government. Turkey seeks to streamline the interaction between citizens and the government through digital platforms. This includes the introduction of electronic voting systems, electronic documents, and online services for accessing government services. Such measures not only improve the accessibility of government services but also reduce bureaucratic burdens on citizens.[5]
Simultaneously, Turkey is actively developing its startup ecosystem and investing in digital innovations. Supporting young entrepreneurs and innovative projects stimulates the growth of new technological companies and contributes to the development of the country's economy. This creates a favorable environment for investors and attracts capital to the digital sector.
Overall, Turkey's efforts to digitize the economy are strategically important for its future development. By modernizing infrastructure, developing e-government, and supporting innovation, the country aims to enhance its competitiveness on the global stage and ensure stable economic growth in the long term.
CONCLUSIONS AND SUGGESTIONS
Based on the analysis of foreign experience in digitalization, particularly focusing on the Republic of Korea, Uzbekistan can draw valuable insights and recommendations for its own digital transformation journey. However, it's also important to consider the processes of digitalization of the economies of Turkey, as it can provide additional perspectives and lessons learned that could be relevant to Uzbekistan's context.
Turkey, like many other countries, has been actively engaged in the digitalization of its economy in recent
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PRACTICAL PROBLEMS AND SOLUTIONS TO THE USE OF THEORETICAL LAWS IN THE SCIENCES OF THE 2IST CENTURY
TASHKENT.MM.Y20M WWW.in-aCademy.UZ
years. The country has placed a strong emphasis on modernizing its digital infrastructure, promoting e-governance, and fostering digital skills among its population. Various programs and initiatives have been developed and implemented to facilitate the digital transformation of the country, reflecting a commitment to leveraging digital technologies for economic advancement and societal development.
In addition to its focus on digital infrastructure and skills development, Turkey has been actively nurturing its startup ecosystem and driving digital innovations. This strategic focus on fostering entrepreneurship and innovation is aimed at enhancing Turkey's position in the global digital economy and fostering a culture of creativity and technological advancement.
Furthermore, Turkey's approach to digitalization may offer valuable insights for Uzbekistan in addressing its own technological gaps and fostering domestic innovations. By learning from Turkey's experiences, Uzbekistan can identify strategies for leveraging global technologies, enhancing workforce qualifications, and stimulating the development of domestic innovations based on accumulated experience and observations.
In the context of digital inequality and the need for educational policies, Turkey's efforts and experiences can provide valuable lessons for Uzbekistan. Addressing digital proficiency disparities among different age groups and fostering a culture of innovation and digital literacy are critical components of Turkey's digitalization journey, which could offer valuable insights for Uzbekistan's own efforts in this area.
Moreover, the experiences of the Republic of Korea and Turkey can collectively inform Uzbekistan's digital transformation strategy, offering diverse perspectives and approaches that can be tailored to Uzbekistan's unique historical and socioeconomic context. By drawing from the experiences of these countries, Uzbekistan can develop targeted state programs for the formation of an information society and the development of a robust digital economy.
In conclusion, the experiences of both the Republic of Korea and Turkey can serve as valuable sources of inspiration and learning for Uzbekistan's digital transformation journey. By carefully studying and adapting the successful strategies and initiatives of these countries, Uzbekistan can chart a course towards a more digitally advanced and innovative economy, fostering sustainable growth and competitiveness in the global digital landscape.
[5] "Startup Turkey: How Turkey's Vibrant Startup Scene is Changing the World"
REFERENCES:
[1] "Digital Transformation and Governance in the Public Sector"
[2] "Digital Economies at Global Margins"
[3] "The Digital Transformation Playbook: Rethink Your Business for the Digital Age"
[4] "The Politics of Digital India: Between Local Compulsions and Global Trends"
