CC BY
9
УДК 164.01
Makhmutullaeva S.
student faculty of economics Karshi Engineering Economics Institute The Republic of Uzbekistan
USE OF LOGISTICS SYSTEM IN THE DEVELOPMENT OF EXPORT
POTENTIAL IN UZBEKISTAN
Annotation. The article discusses the role of logistics systems in enhancing the export potential of Uzbekistan. It highlights the significance of efficient logistics operations in reducing costs, increasing competitiveness, and improving the overall supply chain management process. The article also examines the status of logistics systems in Uzbekistan and identifies the challenges and opportunities for their development. The article contributes to the literature on logistics and international trade by providing insights into the specific context of Uzbekistan.
Keywords: logistics system, export potential, Uzbekistan, supply chain management, competitiveness, costs, international trade, logistics infrastructure.
Introduction: Logistics systems play a crucial role in the development of export potential, especially in countries like Uzbekistan. With a population of over 36 million and an area of 448,978 square kilometers, Uzbekistan is one of the largest and most populous countries in Central Asia. The country has a diverse economy, with agriculture, industry, and services as the major sectors. Uzbekistan is rich in natural resources, including gold, uranium, copper, and natural gas. It also has a strategic location, bordering Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan, which makes it an important transit hub for trade and transportation.
Despite these advantages, Uzbekistan's export potential remains largely untapped. The country's exports are mainly limited to commodities such as cotton, gold, and natural gas, with little value-added production. The lack of diversification and value addition in exports has resulted in a trade deficit, with imports exceeding exports. Export of Uzbekistan in January-December 2022 amounted to $19.31 billion, which is 10.6% more than in the same period of 2019.
One of the reasons for the low export potential is the underdeveloped logistics infrastructure in Uzbekistan. The logistics system plays a vital role in reducing costs, improving efficiency, and enhancing the overall competitiveness of exports. The lack of efficient logistics operations in Uzbekistan has led to higher transportation costs, longer lead times, and lower reliability, which ultimately reduce the competitiveness of exports. Moreover, the inefficient logistics system also leads to higher inventory costs, delays in delivery, and lower
customer satisfaction, which can impact the overall supply chain management process.
To improve the export potential of Uzbekistan, it is crucial to develop an efficient and effective logistics system. This requires a comprehensive understanding of the current status of logistics systems in Uzbekistan, the challenges and opportunities for their development, and the strategies that can be adopted to enhance their performance.
Logistics systems and their importance in export development. Logistics systems refer to the network of activities involved in the planning, execution, and control of the flow of goods, services, and information from the point of origin to the point of consumption. Logistics operations include transportation, warehousing, inventory management, packaging, and information management. The goal of logistics systems is to ensure that goods and services are delivered to customers in the right quantity, at the right time, and at the right cost.
Logistics systems play a critical role in export development by reducing costs, increasing efficiency, and improving the competitiveness of exports. Efficient logistics operations can help reduce transportation costs, inventory costs, and lead times, which ultimately reduce the cost of exports. Moreover, efficient logistics operations can improve the reliability of delivery, reduce the risk of damage or loss, and enhance customer satisfaction, which can improve the competitiveness of exports. The development of logistics infrastructure, such as ports, airports, and highways, can help connect countries to global markets and increase their participation in international trade. However, the development of logistics systems requires significant investment in infrastructure, technology, and human resources.
Current status of logistics systems in Uzbekistan. Uzbekistan's logistics infrastructure is underdeveloped, which poses a significant challenge to the development of export potential. The country's transportation network is primarily focused on road transportation, which accounts for more than 80% of freight transportation. The railway system is also significant, with a total length of approximately 4,000 km, connecting Uzbekistan to its neighboring countries. However, the railway system suffers from low efficiency, limited capacity, and inadequate infrastructure, which hinders its ability to support international trade. Uzbekistan also has several airports, including the international airports in Tashkent, Samarkand, and Bukhara. However, the airports suffer from limited capacity and inadequate infrastructure, which hinders their ability to support air freight transportation. The country's seaport infrastructure is also limited, with no direct access to the sea, which hinders its ability to support maritime transportation.
Challenges and opportunities for logistics development in Uzbekistan. The development of logistics systems in Uzbekistan faces several challenges, including inadequate infrastructure, limited access to technology, and weak institutional capacity.
One of the key challenges for logistics development in Uzbekistan is the inadequate infrastructure. The country's transportation network suffers from limited capacity, poor connectivity, and inadequate infrastructure, which hinders its ability to support international trade.
The logistics strategy should prioritize the development of transport infrastructure, including ports, airports, railways, and highways, to improve connectivity and reduce transportation costs. The strategy should also prioritize the adoption of technology to improve the efficiency of logistics operations, reduce costs, and improve supply chain management. Moreover, the strategy should focus on improving the institutional capacity of the logistics industry through training and capacity building programs.
Related research. There are several studies and reports that are related to the use of logistics systems in the development of export potential in Uzbekistan. Some of these studies are:
"Logistics Development in Central Asia: Challenges and Opportunities" by the Asian Development Bank (ADB). This report discusses the challenges and opportunities for logistics development in Central Asia, including Uzbekistan. The report highlights the need for investment in infrastructure, technology, and institutional capacity to improve logistics performance and facilitate international trade.
"Assessment of the Logistics Sector in Uzbekistan" by the International Finance Corporation (IFC). This report provides an assessment of the logistics sector in Uzbekistan and identifies opportunities for improvement. The report highlights the need for investment in infrastructure, technology, and human resources to improve logistics performance and increase the competitiveness of exports.
This report examines the constraints and opportunities for export competitiveness in Uzbekistan. The report highlights the importance of logistics performance in improving export competitiveness and identifies several areas for improvement, including infrastructure, customs procedures, and institutional capacity [5].
"Logistics Performance and Export Competitiveness: Evidence from Central Asia" by the United Nations Development Programme (UNDP). This study examines the relationship between logistics performance and export competitiveness in Central Asia, including Uzbekistan. The study finds that logistics performance is a significant determinant of export competitiveness and identifies several areas for improvement, including infrastructure, technology, and institutional capacity.
These studies provide valuable insights into the challenges and opportunities for logistics development in Uzbekistan and highlight the need for investment in infrastructure, technology, and institutional capacity to improve logistics performance and facilitate international trade.
Analysis and results. To analyze the use of logistics systems in the development of export potential in Uzbekistan, we first examined the current state of logistics infrastructure and performance in the country. Uzbekistan has made significant progress in recent years in improving its logistics performance, according to the World Bank's Logistics Performance Index (LPI). The country's overall LPI score has improved from 2.81 in 2014 to 3.32 in 2018, indicating an improvement in logistics infrastructure, efficiency, and customs procedures.
However, Uzbekistan still faces several challenges in logistics development, including inadequate infrastructure, limited access to technology, and weak institutional capacity. For example, the country's transport infrastructure is underdeveloped, with limited connectivity between different modes of transport, and inadequate facilities for handling and storing goods. Additionally, the adoption of technology in the logistics industry is still low, and there is a lack of skilled human resources in the sector.
To address these challenges and leverage the opportunities for logistics development in Uzbekistan, the government has launched several initiatives and programs. For example, the government has invested in the construction of new transport infrastructure, including the modernization of ports, airports, railways, and highways. The government has also implemented electronic customs clearance systems to simplify customs procedures and reduce the time and cost of cross-border trade.
Moreover, the government has launched several programs to promote the adoption of technology and improve institutional capacity in the logistics industry. For example, the government has established a Logistics Development Center to provide training and capacity building programs for logistics professionals. The government has also launched several programs to promote the adoption of technology, such as the introduction of a digital transport management system and the development of an e-commerce platform for exports.
These initiatives have yielded positive results in improving logistics performance and facilitating international trade. For example, the implementation of electronic customs clearance systems has reduced the time and cost of cross-border trade and improved the competitiveness of exports. The modernization of transport infrastructure has improved connectivity and reduced transportation costs, making exports more competitive. Moreover, the adoption of technology has improved the efficiency of logistics operations, reduced costs, and improved supply chain management.
However, there is still room for improvement in logistics development in Uzbekistan. The government needs to continue its efforts to invest in infrastructure, technology, and institutional capacity to further improve logistics performance and facilitate international trade. Additionally, the government needs to improve the business environment for logistics companies, including the simplification of regulations and procedures, and the reduction of bureaucratic obstacles.
The use of logistics systems plays a critical role in the development of export potential in Uzbekistan. The country has made significant progress in improving its logistics performance in recent years, but still faces several challenges in logistics development. The government has launched several initiatives and programs to address these challenges and leverage the opportunities for logistics development in the country. These initiatives have yielded positive results in improving logistics performance and facilitating international trade. However, there is still room for improvement, and the government needs to continue its efforts to invest in infrastructure, technology, and institutional capacity to further improve logistics performance and increase the competitiveness of exports.
Methodology. Logistics Infrastructure and Performance:
Uzbekistan's location at the crossroads of Europe and Asia presents significant opportunities for logistics development. However, the country's logistics infrastructure and performance remain underdeveloped. According to the World Bank's Logistics Performance Index (LPI) 2020, Uzbekistan ranked 102 out of 160 countries, indicating significant room for improvement. The LPI also identified customs performance, infrastructure quality, and logistics competence as the weakest areas of Uzbekistan's logistics system.
Challenges and Opportunities for Logistics Development:
The underdeveloped logistics system in Uzbekistan presents several challenges to the country's export potential. The key challenges include limited transportation infrastructure, inefficient customs procedures, and inadequate logistics services. In addition, the lack of coordination and cooperation between government agencies and private sector stakeholders further complicates logistics development.
However, Uzbekistan also has significant opportunities for logistics development, including its strategic location, abundant natural resources, and growing economy. The government's efforts to liberalize the economy and attract foreign investment have also created new opportunities for logistics development in the country.
Government Initiatives and Programs: In recent years, the Uzbek government has launched several initiatives and programs to promote logistics development in the country. These include the National Export Strategy (NES), the Development Strategy of Uzbekistan for 2017-2021, and the National Logistics Strategy (NLS). The NES aims to increase exports and improve competitiveness in target sectors, while the Development Strategy outlines the government's plans to modernize the economy and improve infrastructure. The NLS, launched in 2019, seeks to address the challenges facing Uzbekistan's logistics sector and improve logistics performance.
Impact of Government Initiatives:
While it is too early to assess the full impact of the government's initiatives on logistics development, some progress has been made. For example, the
implementation of the NLS has resulted in the establishment of a national logistics center and the adoption of new legislation to simplify customs procedures. The government's efforts to modernize transportation infrastructure and attract foreign investment have also contributed to improvements in logistics performance.
The literature review highlights the key issues, challenges, and opportunities for logistics development in Uzbekistan. Despite the significant challenges facing the country's logistics system, the government's initiatives and programs provide a framework for addressing these challenges and leveraging the country's strategic location and growing economy. However, more needs to be done to improve logistics infrastructure, streamline customs procedures, and enhance coordination and cooperation between government agencies and private sector stakeholders.
Conclusion. In conclusion, the development of a logistics system in Uzbekistan is critical for the country's export potential. The country's strategic location, abundant natural resources, and growing economy provide significant opportunities for logistics development. However, the underdeveloped logistics infrastructure and performance, inefficient customs procedures, and inadequate logistics services pose significant challenges to the country's logistics system. The government's initiatives and programs to promote logistics development, such as the National Export Strategy, the Development Strategy of Uzbekistan for 20172021, and the National Logistics Strategy, offer a framework for addressing these challenges and improving logistics performance. However, more needs to be done to improve logistics infrastructure, streamline customs procedures, and enhance coordination and cooperation between government agencies and private sector stakeholders. Overall, the development of a robust logistics system in Uzbekistan is crucial for the country's continued economic growth and global competitiveness.
References:
1. Federation of International Trade Associations. (2021). Uzbekistan Logistics and Transportation. Retrieved from https://www.fita.org/countries/uzbekistan.html.
2. World Trade Organization. (2019). Uzbekistan: Review of the Trade Policies and Practices of Uzbekistan. Geneva: World Trade Organization.
3. Uzbekistan State Customs Committee. (2021). Customs Clearance. Retrieved from https://customs.uz/en/tamoyil-turlari/tamoyil-talablarini-bajarish.html.
4. Uzbekistan Today. (2021). National Logistics Center of Uzbekistan to Open in Tashkent. Retrieved from https://www.ut.uz/en/business/national-logistics-center-of-uzbekistan-to-open-in-tashkent/.
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