Volume 02 Issue 12-2022
62
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The article analyses the trend of virtualization of the economic sphere, which is one of the important institutions of
society's life, from a historical-retrospective point of view. In addition, it is explained that the virtualization of the
economic sphere is also important in the virtualization of other spheres, that economic institutions appear as
simulacra in the virtualization of public life.
KEYWORDS
Economy, virtualization, society, social institutions, money, market.
INTRODUCTION
In the industrialized period, society materializes
endlessly in order to form a complex of social
institutions - universal abstract norms. Social
institutions - universal abstract norms form the mutual
relations between people and turn them into social
roles, directing activities based on ideas based on
freedom and development. In various spheres of social
life, such as economy, politics, science, art, family, the
same trend is observed, such as freedom from
arbitrariness, equality, clarity and control of relations,
which in turn leads to universal impersonal standards
of interaction. The practice showed that as a result of
institutionalization, the processes of depersonalization
of individuals and the emergence of society as a
historical phenomenon took place. In the process of
modernization, society is formed as a system of
Research Article
VIRTUALIZATION OF ECONOMY IS THE MAIN MECHANISM OF
VIRTUALIZATION OF SOCIAL LIFE
Submission Date:
December 08, 2022,
Accepted Date:
December 13, 2022,
Published Date:
December 18, 2022
Crossref doi:
https://doi.org/10.37547/ajsshr/Volume02Issue12-10
Shukurov Akmal Sharofovich
Doctoral Student Of The National University Of 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 02 Issue 12-2022
63
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
institutions. Society as a social integrated reality takes
precedence over the social reality of individuals.
During the last decades of the 20th century, social
reality became ephemeral, unstable, and changing,
which is explained by the increasing role of various
simulacra, or more precisely, images of reality that
replace reality, in the life of people and society. This
leads to more and more manifestations of virtual
reality features of real society.
In this sense, virtualization is not a holistic process
applied to society, but emerges as trends in the same
direction manifested in its various spheres. This
direction is manifested as a contrast between the
previous "reality" of social institutions and the current
"virtuality" of simulation of modernist institutional
practices in the main institutional spheres: economy,
politics, science, art, family.
It can be seen that they have become social institutions
due to the market, money circulation , enterprise (firm)
production and consumption increase, and the desire
to free economic activity from religious, territorial and
sexual regulation. This aspiration changes economic
activity from a separate type of activity carried out by
separate clans or different social strata and groups to
"producer-consumer" , "seller-buyer" , "creditor-
borrower" , "manager/ executive/employee" and
made it into a system of universal impersonal roles like
others.
Economic institutions form a set of norms that
determine the ways in which the problems of creation,
distribution and use of wealth are formulated and
solved in the imagination of people in the industrialized
age. Demand, supply, labor, and competition can be
identified as the main elements of this regulatory
complex, which are unchanged in relation to the
specific characteristics of the national economy and
different stages of the modern era. Economic activity
is one of the same four normative complexes. The
activity is to offer the process of producing a
commodity at a level that is considered a good
according to the objective characteristics of the thing.
At the same time, activity refers to the level of demand
characterized by the ability to pay, or rather, the
universal material equivalent of goods - money.
Activity is labour at a level characterized by
productivity, which implies participation in the creation
of goods organized in a certain place and at a certain
time. Finally, the activity is competition to the extent
that it is innovation, which involves the development
and introduction of new products or new sources of
funding. The economic practice of the modern era is
aimed at strict adherence to these norms, which, on
the one hand, implement the ideas of Freedom and
Progress, and on the other hand, as an effective
management of relations to economic activity, not
sacred or existential, but purely material. Solving the
problems of wealth creation and its use appear as
specific solutions to the existing main problem.
Volume 02 Issue 12-2022
64
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
Institutions appear as realities that must be considered
in relation to the goals of individuals. Economic
practices as a purposeful activity aimed at
accumulating wealth and its disposal lead to the
transformation of this activity into value, creating
forms of compliance with institutional norms. In this
sense, everyone who complies with institutional norms
is evaluated as a participant in economic activity, and
according to it, the work performed by him will have
value. Value means giving a certain social status to the
thing being done and to the person who performs it,
and this, in turn, is manifested in the relations between
people as an objective characteristic of the product. In
this case, it is concluded that the institutions are not
only autonomous in relation to the activity, but also
gain more reality when compared to it. Economy
differs from non-economy not by the specific
characteristics of a thing or action, but by its
acquisition of a certain institutional affiliation.
In the new economy, goods, labor, innovation, money,
which are considered the main elements of the
modernist normative complex, are increasingly
becoming a simulacrum.
Considering two centuries of technological progress, it
can be observed that the production of certain goods
has ceased to be a real economic problem. Due to the
fact that mass production has filled the market with
goods of the same quality, production is now
becoming one of the next elements of the economy,
not the primary one. Based on this, it can be said that
consumption, more precisely, the transformation of
developed things into objects of consumption is the
primary problem of today's economic development.
This, in turn, presents the consumer with the problem
of choosing between brands, brands and brands that
show the specific characteristics of the consumer item
. In this sense, in the conditions of mass production and
mass consumption, first of all, signs themselves act as
goods. The social status of trademarks determines
how much the product costs, not the resources spent
on its preparation and its actual characteristics. This
situation is presented through advertising, and
accordingly, advertising creates the image of a product
or company. It can be seen that the market with the
same characteristics is not characterized by real goods,
but by images created through advertising.
Consequently, the real economic process, that is, the
production of value, leaves the fields, the design
bureau and the assembly line, and moves to the
marketer's and consultant's office, the advertising
agency and the media studio. The brand produced is
not a brand (shampoo, suit, car), but an image
(attractiveness,
confidence,
style,
originality,
respectability). Therefore, it is not surprising that in the
last decades of the 20th century, against the
background of the general growth of gross domestic
product, not only agricultural, but also mining and
processing industries have become unprofitable,
subsidized industries. The areas that create images are
Volume 02 Issue 12-2022
65
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
those that provide the economic growth recorded in
statistical data.
The change in the process of creating value in
industries that were previously considered ineffective
is also confirmed by changes in the structure of
employment. As a result, the share of those employed
directly in the “real” production sector (primary a
nd
secondary sectors of the economy) decreases, and the
share of those working in the service sector, which, on
the contrary, includes the media, marketing, consulting
and advertising businesses, is growing (fig.1)
Figure 1. Growth rate of employment in the industry economy sector, %:
1 - 2000-2007; 2-2007-2010; 3 - trend line 2000-2007; trend line 4-2007-2010
Volume 02 Issue 12-2022
66
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
"The simulation of modernist practices of creating
goods and innovations leads to the virtualization of
market and entrepreneurial institutions. In this, market
agents that meet demand with a proposal acquire a
virtual look, acting the roles of competing
manufacturers.
Economic
agents
acting
as
entrepreneurs also take on a virtual form. The basis of
the content of the activities of such economic agents
and material benefits is innovation.”
Product virtualization necessitates an absolute
reorganization of the labor process. Especially this
necessity is increasing today, which makes it possible
for workers to organize a working environment
anywhere, even in transport, at home, in a hotel, in
places of rest. The organization of labor in the form of
a “working day” as a procedure for staying in the office
or a schedule for performing technological operations,
although it loses its economic content, retains its social
significance, and therefore it does not disappear, but
turns into a simulacr. By maintaining the image of this
organization, the structural accuracy and role of the
economic sphere, its separation from the "non-
economic" are simulated, the practicality of cost
calculation is supported on the basis of labor theory or
the theory of value factors. On the other hand, the
image of a particular firm or company also has a serious
impact on the image of the good that is produced in it
or the service it provides. Therefore, when the “non
-
economic” aspects of the Labor Organization process,
such as office design, social and socio-psychological,
consisting of an employee of the organization and
workers in the organization, are exaggerated in PR
activities, they acquire a direct economic meaning. In
this sense, these aspects, originally considered as a
non-economic aspect, become a structural element of
the creation of the image of a firm or company that
determines the value of the goods or services offered
by it. Based on this, these non-economic structural
elements in the creation of the image of a company or
firm themselves have become independent sectors of
the economy and are considered as products that
attract the attention of corporate clients to office
design, corporate image, PR-shares.
Based on this, it can be said that the non-economic
aspects listed above are becoming a decisive factor,
and not just one of the factors influencing the
formation of the value of a good.
From the point of view of simulating labor as a
production activity organized in a certain place at a
given time, the appearance of this organizational form,
which is called a “virtual Corporation” (next
- VK),
looks very symptomatic. Virtual corporations are
temporary alliances of independent companies or
individual agents united to solve a single strategic
issue. Alliance, according to the supporters of the
concept of VK, should exist as a communication
network based on computer technologies, where
companies coordinate their efforts. VK usually lacks
Volume 02 Issue 12-2022
67
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
the vertical integration, central office, work hierarchy,
and other such attributes of a "real" corporation. After
solving the task, the network can easily change its
configuration or completely break down .
In the mid-1990s, large industrial corporations and
banks form "one-off" alliances to create and promote
products and open virtual offices on the Internet. For
example, IBM, the giant of the computer industry,
develops all new projects on the basis of temporary
strategic alliances. At the same time, a quarter of IBM's
employees spend 80% of their working time at home or
on the road, forming a virtual component of the
company's
organization.
In
addition,
large
corporations can operate as a network of dynamic and
flexible small firms operating on the basis of licenses
and subcontracts. Chains like McDonald's or Benetton
are virtual global corporations - they are a network of
autonomous market agents united by a brand and a
way of working. Thus, from a marginal economic form,
VC becomes a common, generally accepted practice.
Replacing the material attributes and practices of
traditional labor organization with their images means
simulating the social roles of manager, employee,
client, etc. The firm (corporation) as a social institution
is virtualized to the extent that compliance with the
norms that made the organization of production a
social institution becomes virtual.
In the modern economy, not only production, that is,
supply, but also demand acquires a virtual appearance.
At this stage of social development, the process of
virtualization covers both goods and money, and
money is not a material substitute for goods, but a
right to borrow money. If money is a material
substitute for goods, then according to its existence, it
serves to provide people with necessary things
regardless of their affiliation. If money appears as a
right to borrow money, people have to provide a large
amount of metal, paper or plastic to pay. A credit
system that paradoxically reverses the processes of
production and consumption (for an individual) makes
the "origin" of demand an important condition. There
is a differentiation of demand which, from a
probabilistic point of view, appears to be equal in size,
but has certain differences in "origin". For example,
credit and insurance institutions distinguish between
the solvency of customers, according to which they can
have the same amount of real money, but have
different financial and insurance reputations.
Virtual product, virtual production, virtual corporation,
virtual money are driving computer networks, allowing
them to become not only basic tools, but also an
environment of economic activity. The virtualization of
the economy is now leading to the commercialization
of cyberspace, where the full cycle of transactions is
often performed and where virtual supermarkets and
virtual banks operate, operating in their own virtual
Volume 02 Issue 12-2022
68
American Journal Of Social Sciences And Humanity Research
(ISSN
–
2771-2141)
VOLUME
02
I
SSUE
12
Pages:
62
-68
SJIF
I
MPACT
FACTOR
(2021:
5.
993
)
(2022:
6.
015
)
OCLC
–
1121105677
METADATA
IF
–
5.968
Publisher:
Oscar Publishing Services
Servi
currency. In 2000, total Internet sales reached 500
billion dollars. In 1995, Internet sales amounted to 350
million dollars, in 1997 they exceeded 1 billion dollars,
and - the milestone of 10 billion dollars.
Table 15. Income of companies from trading on the Internet, billion dollars
Company \ Year
1997
2000
Amazon
0.25
2.75
Yahoo!
0.10
1.10
EBay
0.05
0.42
Based on the analysis based on the observation of
operations carried out with the help of a virtual wallet
in virtual stores, it can be said that they are not
information in the form of rational denotation, more
precisely, information in the form of information
transfer about the characteristics of products and
services, but affective meanings. means a beneficial
image embodied in it.
Concluding the review of new trends in the economy,
it can be concluded that in the new economy, product
production, innovation, labor organization, money
ownership are simulated, and as a result, the market,
entrepreneurship,
firm
(corporation),
financial
institutions are virtualized.
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