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STRATEGIC PRIORITIES OF THE STATE TO STIMULATE SUSTAINABLE GROWTH OF THE ECONOMY OF UZBEKISTAN Kholbaev N.B.1, Kholbaeva S.R.2 Email: [email protected]
1Kholbaev Nodirbek Bahodirovich - Master;
2Kholbaeva Sabina Rustamovna - Master, DEPARTMENT ECONOMICS OF INDUSTRIES, TASHKENT STATE UNIVERSITY OF ECONOMICS,
TASHKENT, REPUBLIC OF UZBEKISTAN
Abstract: the article presents the results of the analysis of examples of economic growth. Changes in economic growth indicators compared to previous years were studied. The advantages, disadvantages, problems and ways to solve them in the strategy of improving the quality of public administration of the Republic of Uzbekistan to ensure economic growth are identified. The development strategy of the Republic of Uzbekistan is highlighted. The decrees of the President of the Republic of Uzbekistan on the direction of further development of economic growth of the state are presented.
Keywords: economic growth, public administration, GDP, GNP, macroeconomics, strategy, economic policy, indicators.
СТРАТЕГИЧЕСКИЕ ПРИОРИТЕТЫ ГОСУДАРСТВЕННОГО СТИМУЛИРОВАНИЯ УСТОЙЧИВОГО РОСТА ЭКОНОМИКИ
УЗБЕКИСТАНА
12 Холбаев Н.Б. , Холбаева С.Р.
1Холбаев Нодирбек Баходирович - магистр;
2Холбаева Сабина Рустамовна - магистр, кафедра экономики отраслей, Ташкентский государственный экономический университет, г. Ташкент, Республика Узбекистан
Аннотация: в статье представлены результаты анализа примеров экономического роста. Изучены изменения показателей экономического роста по сравнению с предыдущими годами. Выявлены преимущества, недостатки, проблемы и пути их решения в Стратегии повышения качества государственного управления Республики Узбекистан для обеспечения экономического роста. Освещена стратегия развития Республики Узбекистан. Представлены указы президента Республики Узбекистан по направлению дальнейшего развития экономического роста государства. Ключевые слова: экономический рост, государственное управление, ВВП, ВНП, макроэкономика, стратегия, экономическая политика, индикаторы.
УДК:33.338.26
Regulations on economic growth are an integral part of the overall system of state regulation of the market economy. In this system, the main component is regulation in order to establish and maintain macroeconomic balance. Since both components relate to the same real basis - public perception, simple and expanded. One of the most important indicators for each country is economic growth, which is tightly associated with the growth of overall national well-being: growth, lifespan, quality of care, level of education, a shorter working period, etc.
The term economic growth first appeared in England, in the second half of the eighteenth century, as a result of the industrial revolution. Before this period, all States lived very poorly and almost equally. For example, there were no significant differences in living standards between early eighteenth-century England and Ancient Rome
Economic growth in any state of the modern world is one of the main goals of the government's macroeconomic policy.
The concept of economic growth is intertwined with an increase in the total number of goods and access to them by an increasing number of people. Economic growth determines the improvement and easing of working and living conditions. The term "economic growth" in the literature has a large number of definitions, but their meaning is the same.
1. «Economic growth is defined as GNP growth or GDP growth in absolute terms or per capita.»
2. «The economic growth of a country means an increase in the quantity and quality of goods consumed by its citizens, which is perceived by modern society as a key economic and political goal.»
3. «Economic theory under economic growth shows an increase in the volume of social production and the expansion of the production capacity of society. »
There are two very different versions of government policy for regulating economic growth. The first is to eliminate unnecessary administrative measures, replacing them with economic ones. For example, instead of introducing any standards for controlling pollution by enterprises of the environment, it is better to assign them a price for the amount of emissions of pollutants. In this case, all enterprises will strive to reduce their emissions of pollutants. In this way, the desired reduction in pollution can be achieved more effectively than if all enterprises are required to comply with the same rules.
The second option is to actively encourage Research and development activities spending, which generally means investing in new knowledge. This can be achieved with the help of the relevant tax code, as well as direct state support and budget subsidies for science and education.
The government's strategy to stimulate economic growth in the developed countries at different stages had its own specifics and peculiarities, and have adopted different concepts.
The system of state regulation that emerged in the United States after the "great depression" of 1929-1933 was primarily focused on managing demand factors or aggregate demand, mainly monetary instruments. Thus, the promotion of investment expansion was based on low interest rates, while the restriction was based on raising them.
In the 80's, a new economic policy was announced in the United States, the essence of which was to move from the economy of stimulating aggregate demand to the economy of supply on the basis of stimulating investment in machinery and equipment, promising technologies.
Proponents of supply-side Economics have focused on factors that increase the productive capacity of the economic system. There are three directions of the state's impact on economic growth:
- promotion of STP and development of scientific research;
- increase in expenditures on education, training and retraining of qualified personnel on a national scale;
- deep restructuring of the tax system.
The main goal of this policy was high rates of production growth, solving social problems: employment, unemployment, poverty, and raising the level of income.
In the 90s, there was a significant increase in public spending on social security, health care, and education, which is largely due to the increasing role of "human capital", creative and innovative human activities as the most important factor in economic growth and the accumulation of national wealth. This is true not only for developed countries, but also for developing countries.
Another area of state policy that encourages economic growth is to maintain competitiveness and optimal production structure through legislative regulation of tax and other preferences, direct or indirect subsidies to certain industries and regions from the state budget. This is especially true for transport and communication infrastructure.
Great importance is still attached to state support for fundamental and applied research and development.
If the government wants to increase productivity, accelerate economic growth and improve the standard of living of its citizens, it must implement the following policies:
- Encourage domestic investment and savings.
- Encourage investment from abroad by removing restrictions on obtaining ownership of the country's capital.
- To stimulate education.
- Encourage research and development. Most of the growth in living standards is due to the growth of technological knowledge that comes from research and development.
- Protect property rights and ensure political stability. Ownership refers to the ability of people to freely dispose of their resources. For people to want to work, save, invest, trade, invent, they must be sure that the results of their work and their property will not be stolen, and that all agreements will be fulfilled.
- Encourage free trade. Free trade is like a technological achievement. It allows a country not to produce all the products itself, but to buy from other countries the types of products that they produce more efficiently. It is often argued that developing countries need to protect young industries from foreign competition and therefore pursue protectionist policies that restrict or even prohibit international trade. This argument is untenable, since expanding trade with developed countries not only allows developing countries to save on costs and not produce products that are inefficient, but also to benefit from the world's latest technical and technological advances.
- Control population growth. To ensure the growth of welfare, the rate of production growth must be higher than the rate of population growth. Meanwhile, high population growth rates make other factors of production "more subtle" (i.e., per worker) and reduce opportunities for economic growth. Thus, rapid population growth reduces the amount of capital per worker, which leads to a decrease in labor productivity and welfare.
Although the Republic of Uzbekistan has improved its position in the world Bank's ease of doing business rating (by 13 positions at once) and is now ranked 69th, Uzbekistan remains in the negative zone in the world Bank's "Governance Matters" rating, which indicates a low quality of public administration.
Table 1. Rating of the Republic of Uzbekistan in terms of quality and efficiency ofpublic administration. World Bank "Governance Matters" rating (Quality of public administration) ( in %)
Name of indicator/year Control of corruption Government effectiveness Political stability and non-violence Quality of legislation Rule of law Public opinion consideration and accountability of public authorities органов
2003 10,61 10,71 12,06 5,10 8,42 2,99
2004 11,22 11,82 8,25 3,94 8,13 3,37
2005 9,76 10,78 3,88 5,39 5,74 1,92
2006 17,07 10,73 6,76 3,92 4,78 1,92
2007 16,02 12,14 10,14 4,85 10,53 1,44
2008 14,08 18,93 13,46 5,83 11,06 1,92
2009 5,74 32,06 18,48 5,74 6,16 1,42
2010 4,29 28,23 23,70 4,78 4,74 0,95
2011 3,79 27,96 28,44 3,79 3,76 1,41
2012 4,74 18,48 29,86 3,32 7,98 1,88
2013 8,06 18,96 27,01 3,32 10,33 2,35
2014 9,62 27,40 36,67 3,37 10,10 2,46
2015 8,65 26,92 33,33 3,85 11,54 2,46
2016 11,06 31,73 36,19 4,33 11,54 2,96
2017 12,02 32,21 38,10 8,65 11,06 3,45
2018 12,50 33,65 35,71 12,02 12,98 6,40
An idea of Uzbekistan's position in comparison with other countries is given by its rank, also calculated by the world Bank.
In Uzbekistan, it is 8.6%, that is, 8.6% of the world's countries have a worse level of regulatory policy than Uzbekistan, which means that Uzbekistan is in the final quarter of the countries on this indicator.
A year earlier, the indicator was lower-4.3%, which, given the absence of changes in the zone, can be explained by the deterioration of the situation in other countries, rather than an improvement in Uzbekistan.
For comparison, at the end of 2018, Singapore, which traditionally receives the best ratings in the ratings of state regulation of the private sector, ranked 100% (that is, Singapore became the best jurisdiction in terms of regulatory conditions for business).
As part of the implementation of the action Strategy for the five priority areas of development of the Republic of Uzbekistan in 2017-2021, purposeful work has been carried out to create a positive image of the country in the international arena in the field of public administration quality.
In the area of improving this area, a number of legal acts have been adopted aimed at coordinating the activities of ministries and departments, national research institutes, and assigning them international ratings and individual composite indicators that correspond to the specifics:
The Index of Economic Freedom) defines economic freedom as " the absence of government interference or interference with the production, distribution, and consumption of goods and services, except for the protection and support of freedom as such that citizens need."
The priority areas for gradual improvement of the position of the Republic of Uzbekistan and achievement of the target parameters in the annual report "Doing business" are:
1. Reducing the number of procedures from the current 3 to 1 when registering a business, as well as the time spent from the current 4 to 1 business day;
2. Reducing the number of procedures for obtaining a construction permit from 17 to 15, as well as the time spent from 246 to 120 days;
3. Reducing the number of procedures when connecting to the power supply system from 4 to 2, while the time spent from 88 to 33 days;
4. Reducing the number of procedures for property registration from 9 to 3, as well as the time period from 46 to 2 days;
5. Reducing the number of tax payments and mandatory fees per year from 10 to 8, as well as the time spent from 181 to 136 hours per year;
6. The reduction of travel time:
- for export-border and customs control from 112 to 5 hours, while the time for processing documents from 96 to 2 hours;
- for imports-border and customs control from 111 to 5 hours, document processing from 174 to 5 hours;
7. Cost reduction:
- export - border and customs control from us $ 278 to us $ 170, document processing from us $ 292 to us $ 160;
- import - border and customs control from us $ 278 to us $ 180, document processing from us $ 292 to us $ 190.
It is expected that the implementation of the priorities and measures defined in the Concept on the quality of public administration will allow the country's economy to enter the middle-income countries (according to the world Bank classification) and by 2030, GDP per capita will be $ 4,538.
It was not enough to define the targets - to achieve them, i.e. to justify the resources that guarantees achievement of indicators (performance plans or contracts). The solution to this problem means, in fact, the transition to results based budgeting.
Public administration institutions should be integrated into the implementation of the Concept of socio-economic development. The management system from top to bottom should be considered in an integrated manner, that is, it is necessary to ensure the relationship between strategic planning and management, public administration and the functioning of economic entities. Ensuring a high level of professionalism, organization and discipline of civil servants, political neutrality and transparency of their activities is a necessary condition for successful implementation and at the same time one of the key areas of public administration reform.
CONCLUSIONS AND SUGGESTIONS
During the years of independence, the Republic of Uzbekistan has achieved success in forming the institutions of its statehood. The system of state authorities makes an important contribution to the development of our society. After independence, as a result of the first stage of reforms, the regulatory and legislative framework was formed, which created conditions for the formation of a class of entrepreneurs, a competitive environment, market infrastructure and the Foundation of market relations.
As part of the implementation of the action Strategy for the five priority areas of development of the Republic of Uzbekistan in 2017-2021, purposeful work has been carried out to create a positive image of the country in the international arena in the field of public administration quality.
Having studied the essence of economic growth and public administration, and their relationship, we offer:
1. Increase transparency and eliminate burdensome bureaucracy;
2. public administration Institutions should be integrated into the implementation of the socio-economic development strategy. The management system from top to bottom should
be considered in an integrated manner, that is, it is necessary to ensure the relationship between strategic planning and management, public administration and the functioning of economic entities;
3. Strengthen anti-corruption measures, toughen penalties;
4. Ensuring effective interagency interaction when using information and communication technologies;
5. ensuring the availability of information to improve the quality of life of citizens, the development of economic, socio-political, cultural and spiritual spheres of society, ensuring cyber security;
6. Increasing the number of e-services provided by government agencies, deep digitalization of the public administration system and reduction of bureaucracy. Develop e-government;
7. Approval of the country's strategic development plan for 5-7 years, with various scenarios;
8. Ensure that the planned indicators are met, i.e., justify the amount of resources that guarantee the achievement of the indicators. Full and open reporting on the budget;
9. Ensure personal responsibility of officials for the implementation/nonimplementation of strategic plans;
10. Reduction of the state's share in the economy.
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