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14UZBEKISTAN ON THE WAY OF MODERNIZATION AND DEVELOPMENT OF NATIONAL ECONOMY
Doctor of Economics, Professor Yuldashev Sh. G.
Uzbekistan, Tashkent, Tashkent Branch of REU after G. V. Plekhanov
Abstract. As modern history of development of the Republic of Uzbekistan shows that situation formed in the late 80-ies and early 90-ies of XX century was extremely critically evaluated by various international experts and specialists. Uzbekistan took one of the last places among the former Soviet republics according to all main economic and social indicators. It lagged twice in average union index according to national income per capita of the republic. Agriculture dominated in economy of the country this period. Its share took over third of gross domestic product while share of industry in which there also dominated industries oriented to agriculture was only about 14%.
In this intense political and economic situation in world arena which was typical for geopolitical intrigue Uzbekistan first had to protect itself from chain reaction effect and secondly form almost a new civil society, new socially oriented economy and also declared new domestic and foreign policy.
Keywords: socially oriented economy, "Uzbek model" of development of national economy, economic growth, investment policy, modernization, small business, localization, import substitution.
Leadership of Uzbekistan put forward a global idea on formation of full independent state: civil peace, national agreement, solid discipline and order in all spheres of life of the republic with full economic freedom of entrepreneurship on the basis of solution of accumulated hypertrophied problems by 1991. It was this formula that was laid on the basis of "Uzbek model" of development of national economy, which for 25 years had never given a failure.
A strategy of transition to market relations in Uzbekistan was based on full account of specific conditions and characteristics of the country, traditions, customs, way of life, liquidation of heavy legacy of one-sided, hypertrophic development of economy in the past. At the same time a model incorporated all the best that has been accumulated by world experience of those countries that have passed through this difficult path of renovation and transformation of the country and society.
Thus Uzbekistan has managed, unlike most of other CIS countries to avoid a large-scale decline in production, sharp decline in living standards of population, rapid growth of domestic and external public the first years of independence. For the period of 1997-2003 economy of Uzbekistan had developed at moderate pace at the level of 3.8-5.2% per year. Stable growth of GDP at 7-9% was provided since 2004 as a result of deepening economic reforms aimed at creating favorable business environment, modernization, technical and technological renewal of production.
Uzbek model of development confirmed repeatedly its sustainability, efficiency and sustained global turmoil in global economy in crisis periods of 1997 - 1998 and 2008-2009 which have been continuing up to now. Rates of economic growth in Uzbekistan remained at high level. Thus its average annual rates were at least 8% last few years Creating a favorable business environment, raising investment capacity provided not only an increase of economic growth rates but also important qualitative changes in the structure of economy [2, p.12].
In particular, adopted in 2000-2016 measures on industrialization, modernization, technical and technological re-equipment of economy industries, creation of new sectors such as automotive, oil and gas and chemical, railway engineering provided a growth of total volume of industrial production in GDP.
A special attention was paid to social policy during the period of economy transformation and transition to market relations. A new mechanism of social protection of population was created in Uzbekistan during the years of independence taking into account real economic situation, available resources and opportunities. An appropriate social policy was conducted at every stage of reform.
Significant changes were made in social policy and mechanism of targeted social protection of population was developed and implemented with the deepening of reform and developing market relations. A main strategic goal of Uzbekistan is building an open democratic state with socially oriented market economy and forming basis of civil society.
It is necessary to note that we started implementation of expensive and high-tech projects: construction of Asaka car plant in 1996, Bukhara oil refinery in 1997, gas and chemical complex in Shurtan in 2002 while modernization process had not yet started in many post-Soviet countries.
Later such major high-tech enterprises like mining and metallurgical plants in Navoi region, Kungrad soda plant, plants for production of engines for vehicles, "MAN" trucks , buses and trucks "Isuzu" were built. At the end of 2015 there put into operation Ustyurt Gas Chemical Complex on the basis of Surgil, one of the most modern high-tech industries in the world. Its design capacity is more than 80 thousand tons of polypropylene, about 400 thousand tons of polyethylene.
Today the main driving force, growth engine of the economy of Uzbekistan has become an industry, which share is about 35% in total structure. It was facilitated by creation of entirely new industries for the country: automotive, petrochemical, oil and gas, agricultural and railway engineering, pharmacy and microbiology.
Food, textile, leather and footwear and furniture industries have acquired quite different character. Starting with primary processing of raw materials many businesses have turned into multistage production of high quality finished products. It is necessary to note that over 60% of all industrial output is a share of high-tech industries created almost from the beginning.
Export structure of Uzbekistan is dramatically changing due to diversification of industrial structure. If in early 90-s the country exports depended mainly on cotton (its share was 60%), than now more than 70% are production of manufacturing industries: automobiles and their components, agricultural machinery, construction and finishing materials, finished textiles and leather goods and others. In spite of peculiarities of geographical position of Uzbekistan that limits an access to sea ports, today products of Uzbek manufacturers are exported more than to 160 countries, including Europe, CIS, Asia, North and South America, Africa and Australia [3, p.102].
It is pleasant to note that over the years of independence in economy of Uzbekistan there has been invested about 136 billion US dollar among which more than 36 billion US dollars are foreign investments. At present from the period of independence investments put in economy of the country have risen domestic investments to 3.2 times; foreign investments to 20 times.
The main partners in implementation of investment projects for manufacture of high-tech products with high added value are the largest and well-known companies in the world: USA ("GM", "Texaco"), Germany ("MAN", "Daimler-Benz", "KLAAS"), South Africa ("Sasol"), Spain ( "Mahat"), Japan ( "ISUZU", "ITOCHU", "MITSUBISHI"), Malaysia ( "PETRONAS"), Korea ( "Korean air", "CNOC", "LG") China ("CNPC"), Russia ("Lukoil ", "Gazprom "), as well as such major international financial institutions like the World Bank, Asian Development Bank, Islamic Development Bank, investment banks of South Korea, Japan and some other countries.
Just for the last ten years volume of investments attracted to economy have been more than 80 billion US dollar including 23 billion US dollar have been foreign investment. Attracted foreign direct investments were directed to priority sectors such as electric power, oil and gas, machine building, chemical, rail and agriculture. A particular significance has foreign direct investments, which make 70% of total attracted foreign investments.
Within the framework of Program on measures for structural reforms, modernization and diversification of production there planned realization of 846 new investment projects total cost of which is over US $ 40 billion by the end of 2019 In Uzbekistan. However, this is only part of a huge complex of measures on development of real sector of economy.
The main task of Uzbek economic policy in long-term perspective is creating competitive, sustainable, structurally balanced economy through development of breakthrough industries that have comparative advantages in formation of long-term raw materials processing chain, strengthening resource and innovation factors for advanced development of high-tech manufacturing industries, providing output growth with high added value.
One of important components of industrial development of the Republic of Uzbekistan is localization of industrial production. First, localization program was adopted in 2000, since then in its framework there has been implemented more than 2,600 projects which cost more than 5.5 billion US dollars. At the enterprises there developed manufacture of more than 5 thousand types of industrial production substituting annual import of 7 billion US dollars. Due to localization of production there have completely stopped import for 97 product groups and reduced more than twice importation of goods from outside the republic on 306 items only last two years [2, 197 p].
It should be noted that over 60% of all industrial production is a share of high-tech industries created almost from scratch. All these activities have radically changed the face of Uzbek economy.
Today in Uzbekistan there developed long-term programs of development of sectors of economy up to 2030 which stipulate rapid rise of manufacturing industries based on implementation of investment projects on advanced 3 and 4 stages processing of raw materials and production of finished products with high added value.
In the Republic there are all necessary premises to increase the issue of petrochemical and chemical products on the basis of deep production diversification more than three times, develop production of new types of complex polymers, olefin, synthetic rubber, synthetic fiber, aromatic hydrocarbons and other high-tech products, compound fertilizer and wide range of chemical products, which are in demand in other sectors as well.
There are real opportunities to increase production in mechanical engineering and electrical engineering 3.7 times, pharmaceutical products - almost tenfold, food industry - five times and building materials industry - four times.
Implementation of these programs opens broad prospects for joint investment cooperation between companies from other countries in the realization of a number of investment projects. Undoubtedly, in the center of attraction there will remain the issues of improvement of the industries that give incentive to successful development of national economy and fulfillment of the target by governing bodies of the Republic: to increase the volume of gross domestic product of the country not less than twice up to 2030 and due to cardinal structural reforms to maintain rapid growth of the industry bringing its share to 40% in GDP.
At the same time the experience of industrialized countries proves that the middle class is the basis for formation of civil society of any country and the most influential factor in its stable and sustainable development. In the conditions of current stage of social and economic development of Uzbekistan entrepreneurs have greatest potential to become a real basis for the formation of this social group of population.
Formation of a prosperous business environment is the most important factor in creating legal guarantees for production and trade growth and increase of the flow of foreign investment. As a result, the number of new modern enterprises grows and the ranks of entrepreneurial subjects replenish in the country every year. In a short period of time our country has become one of the few countries with expanding economic opportunities and export potential [1, 153p.].
Comprehensive development of small business and private entrepreneurship, increasing its share in the GDP of the country, improvement of citizens' well-being are priority tasks on the way to achievement of worthy place of Uzbekistan among the developed democratic countries of the world. As a result of the measures taken to stimulate the development of small business and private entrepreneurship, their share in GDP has increased from 31 % in 2000 to 56.7 % up to date, or 1.8 times. In this sphere today one third of all industrial products and 98 % of agricultural products are produced. More than 77% of total employed population works in this sphere of economy of the country [4].
Today, the middle class is becoming the basis of stable development of society and foundation of national economy of Uzbekistan. During the years of independence Uzbekistan has emerged and developed different forms of ownership. For this much attention is paid to all-out support of the class of proprietor in the country. There developed the necessary legal basis for expanding the sphere of entrepreneurial activity and stimulating development of small business. These processes have gained its progress in 2016.
The reforms that consequently carried out in the country aimed at protecting private property, small business and private entrepreneurship, the removal of obstacles to their rapid development must influence on simplification of administrative procedures, and above all, on practical implementation of legislation.
As noted in the report of World Bank, Uzbekistan is currently among the top 10 countries of the world which has achieved best results in improving the business environment for entrepreneurial activities during recent years.
The next obvious proof of the correctness and logic meaning of the chosen way of the Republic of Uzbekistan on modernization and structural transformation of economy was a report on the results of social and economic development in 2015, which noted that domestic product (GDP) grew by 8.1%. One of the factors of achievement such high performances is structural adjustments of economy and its modernization via technical and technological re-equipment of production.
Government conducts policy of import substitution purposefully, thereby supports domestic producers to strengthen its position in a competitive market, so Uzbekistan is not obliged to continue to import various products and technologies. With this purpose Uzbekistan introduced the Program on production localization from 2014 to 2016. According to the data of the Ministry of Economy of the Republic there were produced import-substituting goods by 850 million US dollars in 2014 and the effect from import substitution in the economy of Uzbekistan amounted to 1.56 billion US dollars according to the results of 2015.
In the course of implementation of projects on developing new types of products in 2015, there created more than 820 new types of products in various sectors of economy of Uzbekistan, and developed 220 new types of goods for export.
The Program of localization and production of finished products for 2015-2019 with a total effect of import substitution in the amount of 17.5 billion US dollars was approved by governing bodies of Uzbekistan in February 2015. The program includes about 800 projects providing deep processing of local mineral resources with an estimated annual effect of import substitution for 3.5 billion US dollars, and creation of 13.3 thousand new jobs.
For enterprises, which implemented the projects approved by the localization program, there have been established a number of benefits for three years, acting within the framework of the previous programs (exemption from customs duties, income tax and property in the funds used for the production of localized products).
According to the data of governing bodies of Uzbekistan the effect of import substitution in economy of the country has exceeded 10 billion US dollars since 1998, and enabled to create hundreds of thousands of new jobs.
Thus, chosen "Uzbek model" of economic development in combination with measures to further deepening democratic market reforms and liberalization of economy, deeply considered and consistently implemented priorities of political, economic and social changes have created a solid and reliable foundation on the basis of which is built sustainable and dynamic development of national economy, which provides consistent rise of welfare standards of population.
REFERENCES
1. Sh. G. Yuldashev. Development of entrepreneurship as a way to formation of the middle class of proprietaries. - Modern science: actual problems and solutions. 2015. № 6 (19). 152-156 p.
2. Sh. G. Yuldashev and others. Uzbek model as strategy for development of national economy: Monograph / Edited by Professor K.Kh. Abdurakhmanov - T.: Tashkent Branch of Russian Economic University after G.V. Plekhanov - 2016 - 268 p.
3. New trends in economic science and education (second edition). Results of I Stage of Strategic Plan of scientific and research work of the departments: Monograph. - T.: Tashkent Branch of Russian Economic University after G.V. Plekhanov. 2016 - 185 p.
4. Economy in figures. State Statistics Committee of the Republic of Uzbekistan. [Electronic resource] URL: htpp: /stat./uz/economi/)
STATE REGULATION OF INNOVATION IN UKRAINIAN
AGRIBUSINESS
Bogdan O. D.
Ukraine, Kyiv, Taras Shevchenko National University of Kyiv
Abstract. The article investigates trends to improve the methods of state regulation of innovation in agribusiness of Ukraine. In the article obtained scientific results to solve and practical tasks on improvement of state regulation of innovative processes. The author has provided recommendations to improve the efficiency mechanism of international practice methods for development of the agribusiness of Ukraine.
Keywords: innovational transformations, agribusiness, state regulation, innovation.
Problem Setting. As innovation is first of the responsibility of businesses and also government responsibility. Innovation has not only benefits for those who innovate, but also others gain: future innovators as well as the clusters of business and the economy at large with a better competitive position and in the long run more jobs and higher incomes. These are so-called positive externalities that an investor in innovation does not take into account and can lead to underinvestment in innovation. A second reason for governments to promote innovation is that this is one of the policy instruments to mitigate negative external effects such as environmental pollution in agriculture and food production.
