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40THE IMPORTANCE OF DIGITAL ECONOMY AND WHAT DIFFERENCES
FROM TRADITIONAL ECONOMY
Jamshidbek Muxtorjon ugli Juraboev
University of World Economy and Diplomacy, 2nd year student of the Faculty of International Economics and Management
ABSTRACT
The article analyzes the state and development of the digital economy in developed countries, and based on the results, considers a number of issues and problems in the strategy of development of the digital economy in the Republic of Uzbekistan and its economic significance. Mechanisms for creating local platforms for digital technology in the country have also been proposed.
Keywords: Digital economy, USA, China, strategies of developed countries, Uzbekistan, traditional economy, IT and modern technologies
We are living in the fast developing world in which technologies can make easier in doing almost activities. With so much emphasis on the digital economy, increasingly moving headlines are offering apocalyptic and thrilling scenarios. Some are warned about job creation in the automation process, some wonder what digital technology is capable of. And then there's the question of whether this is really help being given back to people.
When we talk about the digital economy, we do not need to understand only technology and their use in international financial markets. Digital Economy is an economy in which digital communications are carried out using IT.At the same time, it can also be seen as a means of eliminating the shadow economy. Because, firstly, all transactions will be registered electronically, and secondly, they will be transparent. In addition, the use of new IT technologies in production reduces the cost of products and services. In the other way, The digital economy is a term that captures the impact of digital technology on patterns of production and consumption. This includes how goods and services are marketed, traded and paid for.
The digital economy is now recognized to include all parts of the economy that exploit technological change that leads to markets, business models and day-to-day operations being transformed. So it covers everything from traditional technology, media and telecoms sectors through to new digital sectors. These include e-commerce, digital banking, and even "traditional" sectors like agriculture or mining or manufacturing that are being affected by the application of emerging technologies. The findings of the World Bank's Digital Dividends study show how important the digital economy is in developing countries' economies. In particular, a 10% increase in internet
speed will lead to an increase in the country's GDP. In developed countries, the figure is 1.21 percent, while in developing countries it is 1.38 percent. This means that if the speed of the Internet doubles, GDP will increase by 13-14%.
The rapid spread of digital technologies is changing many economic and social activities. The proliferation of digital divisions is threatening to lag behind developing countries, and especially underdeveloped countries, in creating many new opportunities. A smart embrace of new technologies, expanded partnerships and intellectual leadership are needed to redefine the future contours of digital development strategies and globalization. It is necessary to answer the questions about the beginning days of the digital age and how to deal with the digital problem. In the absence of relevant statistics and empirical evidence, to keep up with the pace of technological advances, decision makers are trying to pursue prudent policies related to the digital economy. The report provides valuable data and analysis for the services of national and senior policymakers to ensure that no one lags behind the fast-growing digital economy. Despite the strong positions in the ICT field of various countries and regions (Japan, Republic of Korea, Great Britain, Nordic countries, etc.), the digital economy, especially online markets, is dominated by only two countries: USA and China. It would seem that the reasons are obvious -in terms of GDP, investments in research and development) in the digital sphere, as well as in terms of the number of consumers, both economies are world leaders. However, without diminishing the importance of these factors, significant differences in the structure of the economy, markets, the rate and quality of GDP growth and individual industries, in the specifics of development the ICT sectors clearly show that the real situation and its causes are more complex. The scale of the digital economy.The United States and China has an unprecedented character. Share of relevant sectors in the GDP of both countries is 1.5-2 times higher world average values. Growth rates of digital sectors economy and related markets significantly higher than the GDP of both countries. Their influence on employment, traditional industries and other economic phenomena and processes. As already mentioned, the USA and the PRC dominate the global digital economy, where, according to the United Nations Conference on Trade and Development (UNCTAD), their combined share is about 40% or more. Both countries maintain leading positions in the traditional ICT industries, in the global telecommunications, electronics and software, their national markets for ICT products and services remain the largest. Analysis of the history of the digital economy of the United States and China confirms a significant difference between both basic and specific factors of its development. Moreover, as you can understand, these differences in a certain sense were the result of larger market and economic trends and factors. For the United States, becoming digital economy and associated markets wore organic and, in a certain sense, evolutionary. First of all, many American platforms and other digital companies are developing approaches that appeared during the Internet revolution
1990s And in this sense, the high values of the "digital" development of the United States pioneering countries of new technologies are understandable. Equally important to success was the fact that new technologies and solutions often follow long-established market trends and or even serve specific, already existing markets selling traditional services on a fundamentally new technological basis and with business models of the digital age. In the latter case, the most revealing cases of e-commerce platforms and sharing of vehicles and accommodations. Although online commerce originated, among other things, on the basis of sales exchanges of electronic files, in its current form, it is essentially a technologically new solution for the long-standing US trade in catalogs, including mail.
In order to consistently continue the comprehensive reforms implemented by the President in the interests of the people, the draft state program for the implementation of the Action Strategy for the five priority areas of development of the Republic of Uzbekistan in 2017-2021 in the Year of Science, Enlightenment and Digital Economy and the Republic of Uzbekistan on February 19, 2018 "On measures to further improve the field of information technology and communications" was prepared. As you know, the digital economy is new reflects the economy, it is human aimed at expanding development opportunities, as well as information, knowledge and contributes to the growth of prosperity through the adoption of innovative technologies. At the present stage of development of the digital economy, Uzbekistan characterized by a period of its formation and high dynamics of development. Taking into account the current global trends, the life of society for Uzbekistan. Accelerated use of ICT in all areas, as well as the overall development of digital technologies will become a driving force for innovation and the world integration and adaptation to the economy allows. At present, the service sector in the country is one of the fastest growing sectors of the Uzbek economy one is and material production far ahead of growth. In 2018, the share of the services sector in GDP 36% and amounted to 146836 billion money formed. At the beginning of 2019 in Uzbekistan 323.5.A total of 213,000 enterprises and organizations were employed in the field of services.65.8% e.i 7400 of them information activities and communication services organizations and enterprises. In general, year-on-year businesses and in the field of communication and information the number of employees is increasing.
So how is a digital economy different from traditional economy? From each other, from the digital system to offering firms to set their business in other words, more time and economic time. They are, in the future, opening up new opportunities. Get navigation apps. No one will ever know that smartphone apps provide real-time, traffic-aware navigation. This means that products and services can be offered to more consumers, especially those who have not been served before.
Second, these effects create new market structures, which eliminate transaction costs in traditional markets. The best example of this is the emergence of digital platforms like Amazon, Uber and Airbnb. These companies bring market participants together in a virtual world. They reveal reasonable prices and build trust among strangers in new ways.
Finally, the digital economy includes and produces large amounts of data. Traditionally, when we shop with cash in a brick and tile store, no one keeps track of our personal consumption or financial transactions on a large scale. Now, ordering online and making an electronic payment means that many of our consumer and financial transactions create electronic data that can be recorded by someone.
The digital economy is with us. The boundaries between digital and traditional are blurring as technological advances cover all aspects of modern life. We all need to understand the nature of this change so that we can respond at any level: social, corporate, and personal.
In particular, the following have been identified as priorities in the digital economy:
1. The interaction between the population, business, public administration, services will be accelerated and transparency will be ensured;
2. The issue of having reliable, high-quality and fast information is constantly being addressed;
3. Growth in terms of production quality and speed;
4. New types of products and services will appear in exchange for "digital production";
5. The size of the shadow economy will be sharply reduced and the black market will be eliminated;
6. The level of corruption is reduced due to the maximum reduction of transparency and human intervention in all areas of governance, industrial production;
7. GIP increases.
All in all, the digital economy will also bring new challenges and rules of the game to the global market along with a number of opportunities. The country's global location largely depends on its ability to adapt to new conditions. The digital economy brings new benefits that will reduce the gap between rich and poor countries. Developing countries have the opportunity to change their economies and contribute to the development of the digital economy. Although these economies are characterized by high added value and face many obstacles, many developing countries are unable to adequately meet the demands of the digital economy. The latest technologies facing developing countries, complex telecommunications infrastructure, low computer literacy,as well as many cultural and socio-economic factors are insufficient. On the other hand, with clear policies and clear plans and goals, it is possible to "skip" a few steps and respond effectively to the demands of the global market. This article focuses
on the challenges and opportunities facing developing countries in the process of creating a digital economy.
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