Volume 04 Issue 02-2024
169
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
04
ISSUE
02
P
AGES
:
169-176
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The digital economy
–
that part of economic output derived solely or primarily from digital technologies with a
business model based on digital goods or services
–
is of increasing importance to developing countries. Yet digital
economy reality is undershooting its potential in these countries, due to a series of challenges. Digital infrastructure
is in part incomplete, costly, and poorly performing. The wider digital ecosystem suffers a shortfall in human
capabilities, weak financing, and poor governance. Growth in the digital economy is exacerbating digital exclusion,
inequality, adverse incorporation, and other digital harms. Alongside explaining these challenges, this paper
overviews the policy objectives and measures, and processes and structures necessary to enhance digital economy
growth and its contribution to socio-economic development.
KEYWORDS
Digital economy, corporation, model, e-business, infrastructure, digital technologies, IT, ICT, opportunities, traditional
economy.
INTRODUCTION
Research Article
THE ROLE OF THE DIGITAL ECONOMY IN THE NEW STAGE OF
NATIONAL DEVELOPMENT
Submission Date:
February 19, 2024,
Accepted Date:
February 24, 2024,
Published Date:
February 29, 2024
Crossref doi:
https://doi.org/10.37547/ajsshr/Volume04Issue02-26
Gulnora M. Musakhanova
Associate Professor Of "Innovative Education" Doctor Of Philosophy In Pedagogy, Phd. Tashkent State
University Of Economics, Uzbekistan
Muslima O. Qobiljonova
2nd Year Student In Marketing And Logistics Faculty, Tashkent State University Of Economics, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ajsshr
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 04 Issue 02-2024
170
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
04
ISSUE
02
P
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:
169-176
SJIF
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MPACT
FACTOR
(2021:
5.
993
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(2022:
6.
015
)
(2023:
7.
164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
What is the Digital Economy? The term 'Digital
Economy' was first mentioned in the 1990s. Then, later
on, it was coined in Don Tapscott's 1995 book, which
was named as The Digital Economy. A digital economy
is an economy that focuses on digital technologies and
covers all business, economic, social, cultural, etc.
activities. Thus, the components of the digital
economy include e-business infrastructure which deals
in hardware, software, telecoms, networks, human
capital, etc. E-business tells us how business is
conducted, the process that an organization conducts
to be digitalized, and e-commerce which is related to
the transfer of goods. The digital economy is defined
as the economic activity that arises as a result of
billions of everyday online connections among people,
businesses, devices, data, and processes. In other
words, you can say that it is an economy that focuses
on digital technologies that are based on digital and
computing technologies. Thus, there is no specific
digital economy definition. Socio-economic processes
strongly depend on the state of telecommunications
and digital networks, which technologically underpin
the IT revolution. The digital economy is one of the
main products of such a revolution. As envisaged in the
Strategy for Information Society Development until
2030, digital economy means the economic activity
operating digital data as a key production factor,
processing Big Data, and using the outcome of
analysis, which significantly enhances the efficiency of
various production types, technology, equipment,
storage, sale, supply of goods and services as
compared with traditional modes of operations. The
digital economy represents (a) a system of production
relations (in the narrow meaning) in the distribution of
resources during the production and data transfer
through
Information
and
Communication
Technologies (ICT), (b) a system of economic agents
that create added value by selling their services of
production and data transfer through ICT. Whether
such economic agents should constitute the digital
economy is a matter of analyzing their value creation
chains. They do if they create added value with digital
means of production.
THE MAIN RESULTS AND FINDINGS
All economic transactions that occur on the internet
involve the Digital economy, therefore it is the one
collective term for all economic transactions. It is also
known by different names such as the Web Economy
or the Internet Economy. As we know the world is
continually changing, With the advent of technology
and the process of globalization, digital transformation
with the digital as well as traditional economies is
emerging in the world. Companies nowadays are using
digital business strategies which are transforming their
business, streamlining processes, and making use of
technologies. They are adopting digitalization to
enhance their interaction with customers and
employees as well as deliver excellent customer
experience.
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Publisher:
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According to the World Bank (2016, p.10), a whole set
of challenges are “preventing the digital revolution
from fulfilling its transformative potential” in
developing countries; including the potential outlined
for digital economies. These create the backdrop of
problems to which policy solutions are required; and
they will here be categorized in terms of digital
infrastructural
challenges,
digital
ecosystem
challenges (human, institutional), and digital economy
disbenefits . The economy can be viewed as a system
consisting of elements and connections. Greater
connectivity among actors and ideas creates more
possible combinations through the identification of
existing opportunities and the discovery of new ones.
―When connections change, so too does the structure
of the system. When the structure changes, the
dynamic properties of the system change also. This
changes the conditions under which connections exist;
new ones may form, and existing ones may fail or may
even become strengthened
‖
(Potts, 2001, p. 2).
Fig 1. Many developing countries are still lagging far behind advanced countries in terms of Internet speed.
Volume 04 Issue 02-2024
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American Journal Of Social Sciences And Humanity Research
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VOLUME
04
ISSUE
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SJIF
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(2021:
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
Average Peak Connection Speed in Second Quarter 2015 (Mbps)
Notes: The average peak connection speed is
computed from the highest connection speed from
each unique IP address determined in a specific
country region, or state in the United States. While the
average peak connection speed is reflective of the
Internet connection capacity, it does not reflect the
connection speed during “normal” usage condition
s,
which are also influenced by the
types of activities that the average user in the country
or region engages in.
Source: Akamai Technologies, Inc. (2015), Akamai’s
State
of
the
Internet
Q2
2015
Report,
https://www.akamai.com/us/en/ourthinking/state-of-
the-Internet-report/.
What is the difference between the digital economy
from the ordinary economy?
For example, the buyer needs shoes. If it falls into the
market and itself is directly recognized and bought for
cash, it is a traditional economy. Choosing a suitable
token through any trading bot in Telegram, the owner
of the commodity is called a digital economy
–
to pay
money through an electronic payment system and
receive it through a service of delivery of the token.
This is an explanation of the issue by the simplest
household example. We are all already in the digital
economy, using its convenience. For example, our
monthly ones fall on plastic cards, through electronic
payment we pay for utilities, telephone, Internet, and
other products and services, electronically file a tax
declaration, transfer money from card to card, order
food to home, etc. The economy can be viewed as a
system consisting of elements and connections.
Greater connectivity among actors and ideas creates
more possible combinations through the identification
of existing opportunities and the discovery of new
ones. ―When connections change, so too does the
structure of the system. When the structure changes,
the dynamic properties of the system change also. This
changes the conditions under which connections exist;
new ones may form, and existing ones may fail or may
even become strengthened
‖
(Potts, 2001, p. 2).
Technological change occurs when the relationships
among elements change or when new connections are
established. The probability of discovering new
combinations increases with the number of
connections. Densely connected systems give rise to a
large set of technical possibilities (a large state space),
while more sparsely connected systems create fewer
possibilities. ―In e
ssence, the defining characteristic
of the modern economy is extremely rapid
technological, organizational, and institutional change,
all embedded within broader patterns of social change
(Potts, 2001, p. 4). This understanding of the modern
economy is imb
edded in Eliasson ‘s concept of the
Volume 04 Issue 02-2024
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American Journal Of Social Sciences And Humanity Research
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VOLUME
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SJIF
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(2021:
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Publisher:
Oscar Publishing Services
Servi
experimentally
organized
economy
which
incorporates a virtually unlimited set of technical
possibilities as well as bounded cognition and
rationality on the part of each actor. This combination
makes it impossible to identify all possibilities
(optimization is not possible); mistakes are therefore
common; and more experiments lead to a larger
number of technical possibilities (Eliasson and Eliasson,
1996).
Hence, the concept of digital economy seems
uncertain and blurred. Therefore, we suggest
construing the digital economy as a system of
production relations for distributing investment
resources while creating tangible products, services,
and technology through the generation, processing,
and/or transfer of digital data, information, and/or
knowledge and attainment of their new quality and/or
production methods by doing this among other things
with ICT within the single innovation and investment
environment. Furthermore, digital data, information,
and/or knowledge can be processed inter alia
analytically and massively with the given technologies,
while the personnel is to maintain the process. It is
especially important to reconcile the concepts of
innovative economy and digital economy. They are
neither synonyms nor names of the same
phenomenon. An innovative economy means a system
of production relations pursuing the creation of
knowledge capital, fundamental scientific knowledge,
and/or innovation and economic agents that create
value added by generating and running the knowledge
capital. Growing rapidly, the digital economy requires
more and more innovations and, therefore,
fundamental scientific knowledge for their production.
Any new type of economy, which human history has
ever seen, needs many products of the innovative
economy, though staying aside from it.
Currently, considering the existing development level
of the digital economy, there can be some
opportunities
for
creating
and
implementing
organizational and managerial innovation pointed out,
which should be in place to raise the efficiency and
quality of the digital economy:
1) higher mobility and expansion of information and
knowledge channels due to new digital communication
networks;
2) adoption of the digital data transfer standard to
seriously reduce specific costs for knowledge
dissemination. However, the very knowledge-sharing
technologies are significantly transformed, thus
slightly modifying the specifics of knowledge as special
types of goods and the nature of the know-how
market, making it more network-oriented;
3) generating codified data sets that may serve to
increase the robustness of analysis, planning, and
control of business;
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
4) access of private parties to communication
channels, markets, and sources of information that the
State or international corporations previously
controlled;
5) substantial modification of channels used to
distribute products, technologies, and services in the
media sector;
6) spreading cybercrime in the digital economy,
revealing social development patterns. Cyber-attacks
undermine the digital economy in areas prioritized by
investors and innovators.
In our country, measures are being taken to ensure the
active development of the digital economy, and the
broad introduction of modern information and
communication technologies in all sectors and
spheres, primarily public administration, education,
health,
and
agriculture.
In
particular,
the
implementation of more than 220 priority projects
aimed at improving the system of e-government,
further development of the local market of software
products and information technologies, Organization
of IT parks in all regions of the Republic, as well as
providing qualified personnel of the sphere has begun.
In addition, the program "Digital Tashkent", which
provides for the launch of Geoportal integrated with
more than 40 information systems, the creation of an
information system for the management of public and
municipal infrastructure, the digitization of the social
sphere, and the subsequent introduction of this
experience in other regions, is being implemented.
"We're going to be left behind if we don't move into
the digital economy. We need to develop a national
concept of the digital economy, which implies the
renewal of all spheres of the economy based on digital
technologies. On this basis, we must implement the
program "Digital Uzbekistan-2030"
–
said the
president of Uzbekistan Shavkat Mirziyoyev. (
5.10.202
0 ПФ
-6079 )
The digital economy allows to growth of the gross
domestic product by at least 30 percent, sharply
reducing corruption. The analysis conducted by
influential international organizations also confirms
this. Therefore, it is necessary to carry out digital
transformation in the spheres of economy, develop
national information technologies and attract
investments in this direction.
A wide range of activities is planned as part of the
strategy implementation:
In the course of the digital transformation of regions
and industries in 2020-2022.
- it is expected to increase the level of connection of
localities to the Internet from 78% to 95%, including by
increasing up to 2.5 million broadband access ports,
laying 20 thousand km of fiber-optic communication
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Publisher:
Oscar Publishing Services
Servi
lines,
and
developing
mobile
communication
networks;
- implementation of more than 400 information
systems, electronic services, and other software
products in various areas of socio-economic
development of regions;
-training 587 thousand people in the basics of
computer programming, including by attracting 500
thousand young people in the framework of the
project “One million programmers”;
- implementation of more than 280 information
systems and software products for automation of
management, production, and logistics processes at
enterprises of the real sector of the economy;
-consolidation of higher education institutions in the
regions to improve the digital literacy and skills of
“khokims” (governors), employees of state bodies and
organizations,
training
them
in
information
technologies and information security, and training 12
thousand of their employees in information
technologies.
29 model districts (cities) will be the first to undergo
digital transformation
–
in 2020 and by the end of the
first quarter of 2021. They will be assigned
representatives of the Ministry of Finance, its
subordinate
organizations,
and
territorial
administrations. Regional working groups have been
formed to coordinate the work and evaluate the
effectiveness of projects implemented every 10 days.
Furthermore:
a) by the end of 2020, the digitalization of preschool
education, health care, and General education schools
will be completed. They will be provided with the
necessary IT infrastructure, computer equipment, and
information systems, and employees will be sent for
training in 13 model districts;
b) Uzbekistan's diplomatic missions abroad will help
the regions and industries assigned to them in
transferring advanced technologies and IT solutions,
attracting leading companies to jointly implement
projects in the digital economy.
What will the development of the digital economy give
us? The digital economy significantly increases the
standard of living of people, which is its main benefit.
The digital economy is the main pillar of corruption and
the "black economy". Because the numbers seal
everything, store it in memory, and provide
information quickly when you need it. Under these
circumstances, it is impossible to hide any information,
make secret transactions, do not give full information
about this or that activity, the computer will show it all.
The abundance and systematization of data does not
allow lies and Gypsy work, because it is impossible to
deceive the system. As a result, it is not possible to
wash" dirty money", steal funds, spend inefficient and
Volume 04 Issue 02-2024
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American Journal Of Social Sciences And Humanity Research
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SJIF
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(2021:
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015
)
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164
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
aimlessly, increase or hide. This will increase the flow
of legal funds into the economy, taxes will be paid on
time and correctly, the distribution of the budget will
be open, funds directed to the social sphere will not be
stolen, the money allocated to schools, hospitals,
roads will be fully reached, etc.
The fact that the state chooses the path to the
development of the digital economy opens up new
directions in the field of Information Technology and,
in general, the turnover of electronic documents. The
turn towards "digital technology" was the reason for
the development of the World Internet network and
quality communication.
REFERENCES
1.
Presidential Decree of May 9, 2017 № 203
-
р, On the
Strategy for Information Society Development
until 2030. General Provisions. Part 4.
2.
Orekhov S.A. [Influence of global tendencies of
development of the information society on the
formation of the economy of knowledge]. =
Economics, Statistics and Informatics. Bulletin of
Educational Methodical Association, 2008, no. 2,
pp. 37
–
40. (In Russ.)
3.
Musakhanova, G. (2022). International Journal of
Innovative Analyses and Emerging Technology:
Ways to Develop Independent Student Skills in an
Integrated Education System. Архив научных
исследований,
2(1).
извлечено
от
https://journal.tsue.uz/index.php/archive/article/vi
ew/704
4.
OECD (2015), OECD Digital Economy Outlook 2015,
OECD
Publishing,
Paris.
DOI:
http://dx.doi.org/10.1787/9789264232440-en
5.
https://www.norma.uz/uz/
6.
https://www.akamai.com/us/en/ourthinking/state-
of-the-Internet-report/.
7.
https://www.researchgate.net/publication/327872
098_Digital_Economy_Policy
in_Developing_Countries
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https://financeninsurance.com/digital-economy
