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Section 4. Regional Economy
Murtazaev Isabek Bozorboyevich, Self-employed Department of Regional Economics National University of Uzbekistan named after Mirzo Ulugbek E-mail: nazoguli85@mail.ru
THE QUESTION OF DEVELOPMENT OF THE STRATEGY FOR SOCIO-ECONOMIC DEVELOPMENT OF THE NAVOI REGION
Abstract: One of the key regions of Uzbekistan with the industrial-agrarian specialization of the economy is the Navoi region, which is particularly distinguished by the development of the mining industry. The main prerequisites, directions and problems of social and economic development of the region are considered, SWOT-analysis of conditions and prospects of economic growth of Navoi region is carried out.
Keywords: socio-economic development, resources, strategic analysis, mining industry, irrigated agriculture, desert-pasture livestock, SWOT-analysis.
Regulation of social and economic development of the region begins with the development of a concept and strategy for regional development. Complex strategic analysis allows determining internal resources and external opportunities for socioeconomic development of the territory. At the same time, it helps to identify internal and external threats to the region's stable development.
It should be emphasized that the methods for developing a regional development strategy are very diverse, which is related to the timing and prospective objectives. The issues of studying economic reforms in the country and their role for the development of regions increase the importance of developing a strategy for regional development. At the same time, the program-targeted approach assumes great importance. Its essence, as is known, consists in the identification of the principal (key) problem of territorial development, the path to solution of which is connected with
the solution of numerous more particular problem blocks and individual problems [1]. Solving the problem of a lower hierarchical level opens up opportunities for solving a higher level problem.
In our opinion, the modern theory of territorial development strategy should be based on the use of modern technologies based on the principles and methods of strategic management, the world experience of long-term regional forecasting. The primary concept in the development of a long-term strategy for regional development and the identification of its particular tasks is the concept of regional development [3]. In general, such a concept determines the volume, pace, proportions and main directions of socio-economic development of the region and its problem areas.
On the basis of the concept, sectoral and territorial programs are prepared. In determining the prospects for regional development, regional strategies of two
types are used. The regional strategy of the first type is a traditional strategy limited by the administrative boundaries of the territory under consideration. The second type of strategy is a unified investment strategy that combines economic, organizational, administrative, political and other components of territorial development. A strategy of the second type is considered more effective [2]. The main mechanisms for implementing such a strategy are:
• Cluster (system-structural) approach to economic development;
• Motivation aimed at ensuring economic growth;
• Raising administrative management to an effective level;
• Increasing the interest of local authorities in increasing their own tax base.
It is advisable to start implementing the above-mentioned measures with the analysis and evaluation of the initial conditions conducive to the economic development of the region or limiting it. Navoi region of Uzbekistan, as is known, has a great natural and resource potential. According to the reserves of some strategic types of mineral raw materials, this region occupies a leading position in Uzbekistan. This circumstance serves as an important factor in the formation and development of the reproduction cycle in the Navoi region.
Achieving high rates of social and economic development of the region is mainly connected with two areas:
- The first direction is connected with external support and redistribution of resources between regions;
- second direction implies rational use of internal resources and competitive advantages of the region.
When regulating the economic development of Navoi region, it is advisable to use the following methods:
• Definition of strategic goals of the region's economic development and their inclusion
in targeted programs through indicative and other planning methods; • stimulating the production of certain goods
and limiting the output of others. In recent years, the following methods and means of economic regulation have been used by the state to overcome the tendency of the decline in general economic indicators:
- further expansion of benefits and preferences for foreign investors;
- development of sectoral, interbranch, and on their basis of territorial programs, processing of existing and implemented programs;
- Development of karakul breeding in the desert-pasture zone, allocation of additional subsidies and subventions to local budgets in order to improve the living standards of the local population, and to regulate grazing in pastures. Solving the problems of developing industrial
production that determine the economic development of the region and the rational territorial organization of the industrial sector are among the priorities in the liberalization of the economy.
When implementing the regional economic policy in Navoi region, it is necessary to take into account that in the territorial-economic system of Navoi region, which has an industrial-agrarian orientation, three intersectoral complexes with a certain spatial reference are distinguished.
1. The largest industrial potential among them is the mining complex, which includes enterprises in the cities of Navoi, Zarafshan and Uchkuduk and mines in the Kyzyl Kum Desert.
2. The second intersectoral complex in the regional economy is the agro-industrial complex on the basis of multi-sectoral irrigated agriculture within the Zarafshan River valley in the south of the region. In this case, agricultural production and animal husbandry are of commercial importance.
3. The third large production complex of Navoi region is the desert-pasture livestock of Tamdinsky, Uchkuduk and Kanimekhsky rural administrative
regions, specializing in karakul breeding, horse breeding and camel breeding.
Over time, the development of industrial production in the Navoi region is beginning to be adversely affected by problems associated with the depletion and increase in the cost of explored reserves of mineral raw materials in the region.
In the old irrigated Zarafshan valley, in the context of the reduction of the water resources of the Zarafshan River, priority should be given to reducing the acreage of cotton, replacing the latter with less water-intensive crops, and cleaning and deepening drainage collectors to combat salinization and reducing the flow of water resources for field washing.
The solution of the current socio-economic problems of the region requires the development of the concept of regional development. Such a concept should reflect the development of the mining industry and related industries and territories, the desert-pasture zone of the region and the zone of irrigated agriculture in the Zarafshan valley.
Great importance in the long term should be given to the tasks of the withdrawal of the three rural administrative districts of the region from subsidized dependence. The bulk of the budget subsidies in this case falls to the share of the Navbakhor and Khatyrchinsky districts, a relatively small part - to the share of the Nurata region of the region [4].
The Navoi region has a well-developed transport infrastructure. Railways and highways of international importance pass in the southern oasis part of the region. Perpendicular to them passes the railway Navoi-Uchkuduk, the continuation of which is the railway Uchkuduk-Miskin-Nukus, built in the period of Independence. Navoi has turned into one of the largest transport hubs in the republic, and the transport functions of Zarafshan, Uchkuduk, and Kanimeh are also increasing.
In the agrarian sector of the region, the primary problem is the rational use of scarce water resources. The water management factor leads to a gradual decrease in the gross yield and yield of some crops in
the region, primarily cotton. The general priority of the industrial sector in the regional economy, unfortunately, does not contribute to due attention to the development of agricultural production by the government. However, this state of affairs is not justified from the point of view of employment and welfare of the rural population of the region.
Formation of the strategy of social and economic development of the region implies the identification of its advantages and weaknesses. It is important at the same time to establish the goal of economic development of the territory, in particular, for the forecast period for the future. For this purpose, quantitative and qualitative parameters of long-term development, the horizon (period) of forecasting, the magnitude and properties of resources necessary for socio-economic development are subjected to a special assessment. At the initial stage of the analysis, the goal and tasks are determined, then the internal and external environment for the development of the regional economy is studied in three stages.
The strategic potential of the regional economy is assessed by analyzing the internal environment (resources, their diversity, structure, reserves, economic value, profitability of operation). It is advisable at the same time to evaluate the parameters to be compared with other areas. Based on the results of the relevant analysis, the vulnerable sides of the social and economic development of the region are identified. The participation of the territory in the foreign economic relations of the state is determined by analyzing the external environment of the socio-economic development of the territory. Through this analysis, the opportunities and risks of the region's future development are identified and evaluated.
The region's economy at the next, third, stage is characterized by a strategic approach to assessing the development potential of the region. At the same time, it is necessary to correlate the potential and real conditions for the development of the territory. To achieve the relevant scientific and practical goals and objectives is the method of SWOT analysis (see Table 1).
Table 1. - SWOT-analysis of socio-economic development of Navoi region
Benefits Vulnerable parties
- Large stock of various mineral raw materials; - considerable labor potential; - discovery of new deposits of valuable minerals (silver, uranium, chemical raw materials); - good provision of infrastructure facilities; - functioning of free industrial and economic zone «Navoi». - Proximity to the exhaustion of stocks of certain types of mineral raw materials, a sharp increase in the cost of their extraction and processing; - mutual remoteness of deposits of mineral raw materials and processing enterprises, complex transport and geographic conditions and high transport costs; - insufficiently high proportion of the local population in the structure of the labor force in the main production sectors; - shortage of fresh water resources; - weak cooperative links between agriculture and industry in the region.
Capabilities Risks
- Possibility of replacement of mineral resources close to exhaustion by other types of raw materials that are similar in properties; - prospects for expanding the activities of the free industrial and economic zone «Navoi»; - the breadth of external opportunities of the region and the possibility of their sustainable conservation until 2020. - Sharp diurnal and seasonal differences in air temperature due to continental climate; - aggravation of shortage of water resources, serious environmental problems in the region; - deterioration of the meliorative condition of agricultural areas of the region.
The table was compiled by the author
The use of SWOT-analysis to determine the direction of social and economic development of Navoi region will contribute to the sustainable economic growth of the territory in a market economy.
As is known, SWOT-analysis of the territory includes the following aspects:
- strong (preferential) parties are determined;
- identify weak (vulnerable) parties;
- the possibilities of achieving the goal are assessed;
- risks that can penetrate from the external environment are identified.
The SWOT analysis, the results of which are reflected in Table 1, shows the significance of the advantages and opportunities for socio-economic development of Navoi region in comparison with its vulnerable sides and risks, which reflects the
high strategic potential of the region. This analysis will help to determine by what advantages the region can compensate for the impact of one or other of its vulnerable parties or prevent the emergence of certain risks.
The advantages and vulnerabilities of the region revealed in the SWOT analysis reflect internal features of the territory, and the opportunities and risks determine the external aspects of the region's development and show additional factors that contribute to or contribute to negative developments in the regional economy. An integrated weighted assessment of all components of the SWOT analysis serves the development of a regional development strategy. Thus, at the first stage, the purpose of the analysis is determined, the potential, conditions for its implementation, status and competition are assessed. At
the second stage, an alternative goal and strategy is chosen. At the third stage, a draft and plan for the implementation of the strategy is developed, and appropriate orders are adopted.
In the process of determining the state and prospects for the development of the region's economy, its status is assessed on the scale of the national and world economy. Strengths (advantages) of the region form the basis of the territorial development
strategy, at the same time, when developing an appropriate strategy, external opportunities are taken into account, in particular, the prospects for entering new markets. Risks for the development of the regional economy may be due to the production of cheaper and higher quality analogues of goods from competing territories, which should also be taken into account when developing a strategy for socioeconomic development of the region.
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