International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
ISSN: 1475-7192
2299
PRIORITY DIRECTIONS OF THE STATE
REGIONAL POLICY: DEVELOPMENT OF THE
AGRICULTURAL SECTOR IN ORDER TO REDUCE
POVERTY
Farmonqul Egamberdiev,
2
Nozim Muminov,
3
Tatyana Kim,
4
Bekmurod Elmonov
Abstract
The article defines the objectives of agricultural development in the system of territorial division of
labor for the future, taking into account the emerging conditions of increasing water scarcity and
environmental tension, and developed proposals for the reorientation of the territorial and intersectoral
structure of the agro-industrial complex of the Republic on the basis of improving the specialization of
agricultural production.
At the same time, the main principles of the mechanism of economic regulation in the agro-industrial
complex, capable of ensuring intersectoral changes taking into account the interests of the Republic, regions
and producers of products, have been identified.
The main purpose of the research is to define the task in the areas of poverty reduction, socio-
economic development of the regions, transformation of enterprises with state participation, formation and
implementation of investment policy, development of entrepreneurship in the country.
Keywords: Regional policy, agrarian sphere, forms of ownership, water resources, environmental situation,
demographic situation, export potential, standard of living, poverty reduction.
Introduction.
The effectiveness of market transformation of the agricultural sector is determined by the
formation of a regional agricultural policy based on modern principles and methods that have proven their worth in
developed countries, focused on adaptation mechanisms and taking into account regional specificities. The most
important priority areas for deepening economic reforms in Uzbekistan are structural changes in the agricultural
sector, taking into account the effective use of the agro-climatic and economic potential of the Republic. From these
positions that it is necessary to approach the problems of scientific substantiation of the development prospects and
directions for improving the structure of regional agro-industrial production. The major economic reorganizations
that have been undertaken recently to ensure the formation of a regulatory framework, changes in ownership forms
and regulatory mechanisms in the agro-industrial complex significantly increase the responsibility of territorial
authorities in solving socio-economic problems. In this regard, it is necessary to assess the existing territorial-
sectoral and interregional proportions in the agro-industrial complex of the Republic, considered from the point of
view of achieving a balance between the types of intermediate and final products produced with the volume and
1
Professor, National University of Uzbekistan
e-mail:
2
Professor, National University of Uzbekistan
e-mail:
3
PhD, Associate Professor, National University of Uzbekistan
e-mail:
4
Master, Senior Lecturer, National University of Uzbekistan
e-mail:
International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
ISSN: 1475-7192
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structure of needs for them. The significance of structural changes is determined by the place of the agro-industrial
complex in the economy of the region, the content of its social functions and its role in ensuring economic growth.
In the regions characterized by a complex demographic situation and in conditions of almost complete
exhaustion of water resources and as a consequence limit the growth of irrigated agriculture, the implementation of
the tasks of prospective development of agriculture involves a fundamental change in territorial-branch structure of
production, the formation of a rational system of interregional links, besides the existing structure of agricultural
production, formed in regions not sufficiently effective as national and regional positions. In March 2020, the Board
of Executive Directors of the world Bank approved the allocation of us $ 500 million to Uzbekistan for the
implementation of the project "Modernization of agriculture". The project will assist in the modernization of
agricultural research institutes in Uzbekistan, conducting applied research and implementing advanced
developments necessary for the further development of agriculture in the country. In addition, due to project
activities, farmers and agro-enterprises will have access to modern agricultural technologies, consultations on
various agricultural issues, agrologistic services and long-term loans for business development, as well as be able to
increase its productivity. This will improve the quality and range of agricultural products and increase the presence
of local producers in the domestic and foreign markets. Today, most of the residents of the regions of Uzbekistan,
especially villages, do not have sufficient sources of income. As in all countries, the Republic also has low-income
segments of the population. According to various estimates, this figure is 12-15 percent. We are talking about 4-5
million people in our country.
The experience of countries with developed market economies shows that the efficiency and growth of
agricultural production can be achieved only if the complex solution of organizational, economic, social and
environmental problems, as well as in the context of structural adjustment and innovative development path. At the
same time, the scientific and methodological foundations of regional agricultural policy, forms and methods of their
implementation, taking into account the territorial features of agricultural production and economic liberalization,
are still poorly studied in economic research. The main directions of structural changes at both the national and
regional levels are still insufficiently developed. This is largely due to the lack of theoretical studies of regional
features of the development of agro-industrial production. At the same time, the search for effective forms of
interaction between business entities in the context of economic modernization, as well as the formation of a
mechanism for regulating regional and inter-regional interests, becomes important.
In this regard, methodological approaches to the formation of regional agricultural policy and the
development of a mechanism for its implementation based on a comparative assessment of the economic potential
of territories are particularly relevant.
The study level of the problem.
The analysis of the main concepts and terms of the regional economy is
devoted to the work of E. B. Alaev [1]. Theoretical and empirical analysis of sustainable economic growth in the
regions was carried out in the research of Amitrajeet A. Batabyal [2]. This study also indicates that all countries are
currently facing serious problems, such as environmental problems, social security and unemployment. Rapid
economic growth has led to environmental pollution, regional inequality, and severe congestion due to insufficient
infrastructure. Issues of economic integration based on integrated resource development in the regions are analyzed
in the research of Bandman M. K., Ionova V. D. [3].
The structure of regional economic theories and their evolution within the framework of Western and
domestic science are analyzed in the works of A. G. Granberg [4]. They describe the statistical base of regional
analysis, indicators of socio-economic development of the region, and methods for analyzing interregional relations.
Mathematical models of spatial and regional economy are analyzed.
The research of Musvoto, C., Nortje, K., Nahman, A., Stafford, W. [5] provides a useful analysis of the
context of the implementation of the green economy and the practical framework for the implementation of green
economy projects for growing vegetables. This study combines information from Desk reviews and field studies on
growing vegetables in the context of the green economy to bridge the gap between the theoretical concept of the
green economy and practical implementation problems. It involves a step-by-step process of converting abstract
principles of the green economy into real projects on the ground, so that the potential benefits of the green
economy are realized.
Models of economic growth and technological changes in agriculture in the production of food grains, the
relationship between agricultural and industrial growth, and the integration of agriculture into the overall
development policy were studied in the works of Islam N. [6].
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Some scientific papers have examined several adaptive farming methods from around the world to meet
the current and future food security needs of agriculture in response to the challenges posed by climate change and
global population growth. The works of Dubey, Pradeep Kumar, Singh, Gopal Shankar, Abhilash, Purushothaman
Chirakkuzhyil [7] investigate how farmers adapt to environmental changes by applying various agronomic methods
at the level of crops, farms and landscapes. Special attention is paid to systemic and transformational adaptation
strategies used by farmers, such as mulching, organic farming, and crop diversification. This is a very informative and
carefully presented book that explains how crops can create resilience to periods of drought, salinization, and
natural disasters such as floods and diseases. The policy implications and future prospects of these adaptation
strategies are also being considered.
The research of Indian scientists Mehta, AK, Bhide, S., Kumar, A., Shah, A. [8] examines strategies that have
been successful in tackling poverty arising from conflict situations, presents a discussion of migration as the most
important mechanism for overcoming poverty, analyzes the links between poor health and poverty, as well as
education and poverty, in order to draw attention to policy imperatives. this requires attention.
Research by Shiraishi, T., Yamagata, T., Yusuf, S. [9] highlights poverty reduction strategies in developing
countries with an emphasis on the power of the market mechanism and the energy of the private sector, with an
emphasis on practical experience in addressing several longer-term challenges and taking full advantage of advances
in technology, as well as the increasing importance of human potential.
At the same time, economic modernization implies full economic independence of producers, based on the
use of various forms of ownership of the means of production, and market relations between economic partners. At
the same time, the problems of developing links and mechanisms, forms and methods of interaction between state
and market regulators at the national and regional levels remain the least studied in scientific terms. It is becoming
more and more urgent to systematize the accumulated knowledge and generalize the experience of economic
transformations in the agro-industrial complex in the context of economic modernization, taking into account the
peculiarities of market and state interaction between the development of the agricultural sector and its subjects in
the regions. This, in turn, calls for the development of a number of new theoretical, methodological and practical
aspects of structural reorientation of regional agro-industrial production in order to create an effectively functioning
economic system and combat local poverty.
The purpose and objectives of the study.
The purpose of this research is to develop scientific and
methodological approaches and the most important priority directions for improving the structure of the agro-
industrial complex of Uzbekistan, taking into account regional characteristics and the liberalization of economic
conditions. In accordance with this, the work provides for the following tasks:
–
based on the study of theoretical prerequisites to justify the functions of indicative planning in the context
of economic modernization and identify the main principles of developing targeted programs for the
development of the agro industrial complex;
–
analyze the stages of development and compare models of agricultural reform in market economies,
identify the reasons for regional differentiation of its results;
–
to study the regional factors limiting the growth of agro-industrial production, to study the main trends of
its development and the existing structural imbalances;
–
analyze the efficiency of using agro-industrial potential and the existing territorial structure of agro-
industrial production in the Republic;
–
to identify the features and assess the achieved level of food consumption, including at the expense of own
production and interregional exchange, to justify methodological approaches to determining the capacity of the
food market;
–
determine the goals of agricultural development in the system of territorial division of labor for the future
taking into account the current conditions of increasing water scarcity and environmental tension;
–
develop proposals for reorienting the territorial and intersectoral structure of the agro-industrial complex
of the Republic on the basis of improving the specialization of agricultural production;
–
to substantiate the basic principles of the mechanism of economic regulation in the agro-industrial complex,
which can provide intersectoral shifts taking into account the interests of the Republic, regions and producers;
–
determine the tasks in the areas of poverty reduction, socio-economic development of regions,
transformation of enterprises with state participation, formation and implementation of investment policy,
development of entrepreneurship in the country, and more.
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The subject of the research
is economic relations that are formed under the influence of market and state
regulation of the agricultural sector of the economy and the poverty reduction program, reflecting objective
features, trends in its development and functioning of regional agro-industrial production.
The object of research
is the structure-forming branches of the regional agro-industrial complex (agriculture,
processing industry).
The methodological and methodological basis of the research
is a systematic approach to the comparative
analysis of modern socio-economic problems of the agricultural sector of the economy. The methodological basis of
the research was the scientific works of economists on the problems of regional economy.
The research was carried out using methods of retrospective, systematic and comparative analysis,
mathematical and statistical analysis, expert assessments, computational and constructive, balance, monographic
and cartographic methods, index ranking method, and others. The research is based on a wide use of statistical data,
developments of research institutes, reports of agricultural and processing enterprises of the agro-industrial
complex.
The scientific novelty
of the research results is as follows:
–
summarizing the methodological foundations of economic forecasting, the author substantiates the
position that indicative planning should be included in the number of tools for regulating market relations;
–
the concept of organic connection of long-term forecast workings and program approach in solving
functional and target tasks of agro-industrial production development is substantiated;
–
a system of indicators for assessing food consumption is proposed, methodological approaches to
determining the capacity of the food market for prospective balance calculations of income and expenses of families
are developed;
–
the article substantiates the principle that in the conditions of economic integration of the Republic into
the world economy, the main function of the agro-industrial complex in solving the socio-economic problems of the
region should be the efficiency of development, based on the formation of a rational system of interregional
relations;
–
priority directions of development of agro-industrial complex branches for the future are defined, various
hypotheses reflecting probable alternatives of agricultural production development are evaluated;
–
methodological provisions have been developed for the formation of a state order for agricultural products
based on the principle of its placement in highly efficient production zones;
–
a proposal was put forward for priority development of the non-irrigated zone based on a program
approach with an organizational and economic mechanism for its implementation;
–
improved methodological provisions for the development of the agricultural sector of the Republic's
economy, due to the relationship of ownership, its forms and principles in accordance with the action of objective
and subjective factors in the development of agro-industrial production;
–
a method of state support for the regional agricultural sector is proposed, based on taking into account the
differentiation of regions by the level of natural and economic potential of agriculture;
–
recommendations for improving the economic methods of state regulation of regional agro-industrial
production development based on a system of economic methods and indicative planning with the strengthening of
forecast, regulatory and analytical functions have been developed;
–
regional medium-and long-term strategies to combat poverty have been developed.
The practical significance of the research
is that the results obtained on the long-term development of
regional agro-industrial complexes can be used by Republican and territorial authorities in the development of long-
term, medium-and short-term forecast calculations and targeted programs for the socio-economic development of
regions. The projected proposals for improving the mechanism of economic regulation are a tool for switching from
administrative methods of management to economic methods of management of the industry, which contributes to
the orientation of structural shifts to market requirements.
The research focuses on the development of an integrated system of regional agricultural policy in the
context of the modernization of a socially oriented economy. The results represent a contribution to the
development of methodological bases of formation of agrarian policy and policy to reduce poverty in the field,
provide a comprehensive approach to the development and implementation of effective development of agrarian
sector, improvement of normative-legal base on national and regional levels in their close relationship.
Main results.
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1. To date, the justification of the regional structure of the agro-industrial complex at the regional level has
not been fully resolved, which to a certain extent hinders research on the development of regional agro-industrial
complexes. From a General methodological point of view, it is possible to define a number of principles that can be
fundamental when considering the formation of regional agro-industrial complexes. This is primarily the formation
of a regional agro-industrial complex from the position of its target orientation. Second, the establishment of criteria
that contribute to the sector and the sectoral structure of regional agriculture. Third, the need and feasibility of
organizing the regional agro-industrial complex. Fourth, when addressing the issues of forming the structure of
regional agro-industrial complex, it is necessary to establish a system of indicators that assess the possibility and
feasibility of forming external relations of the regional agro-industrial complex with other regions and with foreign
countries. Fifth, one of the principles of forming the structure of the regional agro-industrial complex, its spheres of
activity, and infrastructure divisions is the presence of an integration effect. Finally, one of the principles of forming
a regional agro-industrial complex is the formation of a system of developed market infrastructure, including such
components as Finance, credit, marketing, etc. This system of principles is sufficient for the formation of a regional
agro-industrial complex, however, in each case, this system can be supplemented by other provisions. In any case,
regional agro-industrial complexes should not be understood as a simple sum of spheres or industries that are
integrated into the Republican agro-industrial complex and can represent a single set with consistent development
goals and developed ties. On the other hand, the components of a regional agro-industrial complex may have
relations with the corresponding links of other regional agro-industrial complexes and the external market with
varying degrees of development [10].
Guided by the above, we will focus on the conditions and factors that affect the formation of the
development goal of the regional agro-industrial complex. The formulation of the goal of the regional agro-industrial
complex is influenced by the demand on the domestic and foreign markets and the related territorial specialization
of agriculture, which, in turn, is determined by the differentiation of natural resources, economic, historical, national
and social. At the same time, the main factor in the division of labor between regions is the level of labor
productivity and the nature of the use of regional conditions and factors of economic growth.
The specifics of structuring the principles of forming regional agribusiness and the conditions for their
development relate to individual products that require special conditions for their production. This is primarily a
suburban zone, a mountain-foothill zone, a desert-pasture zone, and a cotton zone. Meeting the needs of the
population in agro-industrial products at the expense of their own production can not be considered as an end in
itself for each regional complex, no matter how wide its possibilities may be.
2. The Centralized management system for forecasting the development of the agro-industrial complex
was formed throughout the territory of the Republic according to a single program, according to common indicators
and time factors. In the conditions of economic modernization, characterized by the formation of a multi-layered
economy, the development of economic entities with broad economic independence, the management system
should be transformed in relation to market relations.
The most effective form of state regulation of agribusiness development can be an indicative form of
planning (forecasting). The value of indicative planning in the system of market relations is, first, in the formation of
information about the market situation in the agro-industrial complex, second, in participation in government
programs, and third, in the ability to expand information and develop the innovation process.
In this regard, the paper puts forward a provision on the possibility of including indicative planning among
the tools of economic policy. The use of an indicative plan in order to influence the development of the economy in
the desired direction implies, as shown in the study, the following features:
- the use of levers of economic regulation (taxes, credit policy, etc.) can act in different ways, depending on
whether their changes are accompanied by correct forecasts or they are applied without forecasting. Forecasts that
take into account the socio-economic and legal consequences of the use of economic regulatory instruments can
enhance the effectiveness of the latter, thereby contributing to the strengthening of the stability of the market
mechanism;
- indicative planning acts as a source of information and coordination of interrelations of economic systems
at various levels, which help decision-makers to assess their own prospects for development with the desired
strategy of economic development;
Setting
requirements for
models
Formulation of
information
collection
Formulation requirements
for the forecast development
principles
Development tools
Program development and
Development
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Figure 1. Organization of work on forecasting development and placement of agriculture and processing industry
- continuity depending on changes in specific economic and forecasted processes. At the same time, in each
specific case, when deviations from the acceptable forecasted indicators are made, appropriate impacts on
economic development are made through a system of regulated market mechanisms (figure 1).
3.The most Important feature of improving the economic mechanism is the transition to market-based
management methods, which will require a revision of the existing forecasting technology. The system of short -,
medium-and long-term forecasting should not solve the problem of accurately reflecting future processes with their
quantitative characteristics and means of achieving them.
In this regard, the author justifies the provision that assigns a leading place to target programs in providing
Republican bodies with an effective mechanism for managing the process of territorial development. At the same
time, the methodology of regional programming should consider three main aspects, taking into account the socio-
economic conditions, which include:
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- involvement in economic turnover of new types of resources and their effective use, achievement of
rational specialization of farms taking into account their greatest contribution to economic development, formation
of territorial-industrial, agrarian-industrial and other complexes that most fully use local opportunities and resources,
ensuring balanced development of the region on the basis of effective spatial organization of production;
- focus on equalizing socio-economic living conditions, improving the standard of living of the population in
various regions. This is due to the impact on the level of employment, to stimulating the migration of labor resources
in the right direction, to solving social problems, to overcoming the socio-economic problems of lagging
underdeveloped areas;
- establishing rational norms of production consumption of natural resources when involving them in
economic turnover, preventing or limiting its impact on nature.
Methodological basis in the development of target programs of development of territories is the provision
that the region on the one hand is an element of the economic system as a whole and is characterized by sustainable
production and economic and infrastructure links with other territories and economic systems, on the other - in the
conditions of modernization of economy it is a territorial-economic entity performing an active economic role.
There are two indicators that are used to measure a person's level of well-being at a particular time: per
capita income or consumer spending per capita. In practice, it is recommended to use the second indicator due to
the fact that income is more volatile than consumption, some sources of income are difficult to identify, and the
probability of providing false information about income is higher. However, using information on consumption
expenditure as an indicator of well-being, certain adjustments should be made to this indicator to account for
changes in prices over time, price differences between individual countries, household goods consumed (including
food), the cost of public goods and services received by the household (free or subsidized health care, school
Lunches, public education).
Therefore, in order to determine who is poor and who is not poor, based on knowledge about
consumption (income), it is necessary to select a
threshold level of poverty
, which is usually called the
"poverty
line"
. This is quite a difficult task, since there is no consensus on the definition of poverty, nor on what will serve as a
threshold for the concept of poverty. The most commonly used definitions of the poverty line are:
Nutrition-based poverty line
. Poverty takes certain forms, and one of these forms is hunger. In this case,
well-being will be measured as the daily caloric intake per capita and compared with the daily minimum energy
requirement for this category of people. The food and agriculture organization of the United Nations defines a
minimum level of an average of 1,800 kilos of calories per day, with needs adjusted for the age, gender, and activity
level of the person. Other forms of nutrient deficiency can be measured, for example, for proteins or certain types of
micronutrients called "hidden hunger". The recommended minimum can then be used to establish a universal
poverty line.
International poverty line.
This poverty line is used by the world Bank for international comparisons. It
was set at us $ 1 per day measured in dollars at purchasing power parity for the extreme poverty line indicator and
us $ 2 per day for the poverty line indicator. Recently, these poverty lines were raised to $ 1.25 per day and $ 2.5 per
day, respectively. The reason for this is that this is currently the poverty line used by the 15 poorest countries in the
world. However, at the moment, taking into account the specifics and stages of development of different countries,
other poverty lines are also used. In particular, for countries with lower-middle income, the poverty line is set at $
3.2 per day and for countries with higher-middle income - $ 5.5 per day.
Relative poverty line.
Poverty is not only an absolute concept, but also a relative one. People may well
feel poor when comparing their consumption with others in the corresponding control group. This is the concept of
relative deprivation – people attach value to their income or consumption relative to the average value in their
country or community. The relative poverty line can also be interpreted as the cost of social integration, which is the
level of expenditure required for decent participation in ordinary social and economic activities. The relative poverty
line is commonly used in Europe. In this case, the poverty line is the amount of consumption (income), below which
25% of the total population remains.
Subjective poverty line.
We can say that poverty is not only an absolute or relative standard, but also a
perception. In this case, households are asked: "What expenses do you consider to be absolutely minimal?» and this
is compared to their actual expenses. Consequently, the proportion of those who have actual expenditures below
the stated subjective minimum is the level of poverty. However, like all subjective statements here, in many cases,
the result depends on how the question is asked [11].
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In General, the formation of programming can be associated with the transition from current, emergency
measures aimed at overcoming the consequences of cyclical fluctuations to a long-term strategy of economic
growth and development. Thus, regional programming should be considered as a specific form of active state
influence on the entire socio-economic system through direct influence on the spatial forms of its organization.
However, there is some difference between regional policy and regional programming. The first concept is broader,
covering the entire set of measures to regulate the placement of individual elements of productive forces in the
country, the second concept refers only to centralized medium-and long-term regional development programs.
In General, foreign researchers identify four main areas of regional programming that roughly correspond
to the most important types of territorial problems: 1) program for the development of new areas; 2) program
development (industrialization) underdeveloped areas; 3) development programs of depressed areas; 4) programs
and activities in relation to areas of high concentration of production and population (programs and activities for the
protection of the environment).
In this regard, the importance of a new direction of regional economic science - regional diagnostics,
designed to determine the state of the region, detect "regional problems", "constraints" and "bottlenecks". The
development of methods and approaches to identify the prospects of the region in an uncertain economic
environment is very relevant for the development of an optimal development strategy.
Clear definition of problems and hierarchical ordering of works and performers are designed to ensure
high efficiency of the programmed activity.
The main fundamental requirements for improving the methodology for forming and implementing the
program approach in practice are:
- analysis of the most important regional problems of agro-industrial complex development;
- formation of a system of goals and identification of the main agencies, organizations and territories
interested in the implementation of the program;
- a list of specific activities intended to achieve the goals, indicating their priority and the scheme of their
financing by various state and local authorities, associations and other organizations for the entire period of the
program implementation, broken down by year;
- creation of an interdepartmental management div that includes representatives of all interested
organizations and local authorities;
- development of an economic mechanism that ensures the implementation of the target program (a
system of tax incentives, interest on loans, subsidies, etc.).
The implementation of targeted programs should be entrusted to the Republican, regional and district
levels and provide the territorial authorities with a reliable management tool. At the national level, the General
management, financing of the program is carried out (the state does not set a mandatory final goal of making a
profit from its investments, but uses these investments as a means of increasing the economic activity of
producers) and monitoring its implementation. At the local level, specific measures are being taken to engage and
realize the potential for economic development of the territory.
At the same time, the implementation of targeted programs must be reviewed and approved by law, and
it is also necessary to justify its implementation by a special government div with the definition of its status,
powers and the scope of its decisions.
4. The Study showed that the need for agricultural reforms in developing countries was due to the
important role of the agricultural sector in national economies and the inadequacy of the existing structure, the
requirement of a new macroeconomic situation, high subsidies in most countries, production inefficiency and the
loss of commodity markets.
In the economy of Uzbekistan, the agricultural sector provides more than 70% of domestic trade and more
than half of the country's foreign exchange earnings, its share in GDP is more than 30%. The agro-industrial complex
employs more than 46.7% of the country's working-age population, and the agricultural sector produces up to 90%
of the food needed by the population of Uzbekistan.
The share of gross agricultural output in GDP decreased from 34.1% in 2015 to 32.4% in 2018, and the rural
population in these years increased by 5.3%, the entire population of the country also increased identically over this
period by 5.3% (figure 2).
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Figure 2. Main macroeconomic indicators of agricultural development.
Source:
Agriculture of Uzbekistan. 2015-2018. Statistical compendium. The State Statistics Committee of Uzbekistan.
Tashkent, 2019. P. 12, 19.
The main reasons for the decline in gross agricultural production are:
reduction of state support for investment and capital investment;
reduced levels of mechanization, chemicalization and reclamation of agriculture, low labor motivation;
reduction of acreage and land productivity;
disparity in prices for industrial energy products and agricultural products.
Thus, our analysis allows us to conclude that the agriculture of the Republic has favorable prospects for its
further development. The beginning of stable growth of gross agricultural output creates objective prerequisites for
the restoration of stable production systems on a fundamentally new market basis, through the implementation of
liberal economic reforms.
5. The Study of various aspects of the specifics of the socio-economic conditions of functioning of the agro-
industrial complex of the region together determines the main content of its development strategy [12]. Regional
features that constrain promising ways of development of agribusiness industries are:
- reducing water availability in agriculture;
- insufficient development of priority export-oriented industries, taking into account their competitiveness in
the foreign market;
- demographic situation characterized by relatively high rates of natural population growth in rural areas,
slow rates of urbanization, and a large proportion of working-age groups;
- increasing environmental tensions in the region related to the decrease in the level of the Aral sea, the
deterioration of water quality and soil fertility.
Given that almost the entire volume of surface run off is concentrated in transboundary rivers and is used by
all Central Asian States, an urgent need for all countries in this region is to optimize the water use system and reduce
unproductive water consumption. The situation in the region is further complicated by the fact that renewable
surface water resources are almost completely developed. The main consumer of water resources in the region is
irrigated agriculture. The demand for water will increase due to the relative growth of the population, the
development of agriculture and industry. Given the current water scarcity in Central Asia, even a small reduction in
water resources is a serious problem.
The most perfect form of accounting for climate conditions and resources based on their comparative
assessment is agro-climatic zoning, which is a system of divisions of territories that differ from each other in the
climatic conditions of development and regional features of agricultural production – specialization, the nature of
organizational, economic, agrotechnical and other measures. All of them are an integral part of solving the problems
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of economic zoning of territories of a particular natural zone. The zone of irrigated agriculture of the Republic is
grouped into six economic regions, since there are significant deviations from natural conditions and agro-climatic
resources within the zone, which determine the differences in the location and specialization of agricultural and
livestock industries [13].
According to economic zoning, the Republic is divided classically:
The Tashkent economic region
consists of the territory of the Tashkent region and the city of Tashkent,
which account for 3.5 % of the area and more than 16.3% of the population of the Republic. In 2018, the region
accounted for more than 22.5% of gross domestic product, 34.4% of industrial and 10.0% of agricultural products
produced in the country.
Second in terms of production potential is
the Fergana economic region
, which includes the Andijan,
Namangan and Fergana regions and occupies 4.3% of the entire territory of the Republic, where 28.6% of the
country's population lives. This region accounted for 15.4% of gross domestic product, 20.2% of industrial and 26.7%
of agricultural output in 2018.
The Central economic region
includes the Bukhara, Navoiy and Samarkand regions. This region is the
largest in Uzbekistan in terms of territory – 37.4% of its total territory, and 20.1% in terms of population. The share
in the production of gross domestic product in 2018 was 18.2%, industrial-19.1%, agricultural products-26.9%.
The southern economic region
consists of Kashkadarya and Surkhandarya regions, which have 10.9% of the
country's territory and 17.4% of the population. This region is characterized by more developed agriculture,
especially animal husbandry. The share of gross domestic product in 2018 was 11.2% of the national, industrial –
7.5% and agricultural products - 16.9%.
The Mirzachul (formerly Golodnaya)economic region
represents two neighboring regions - Jizzakh and
Sirdaryo, whose territory accounts for 5.7% of the entire Republic, the population - 6.6%. in 2018, this region
produced 4.9% of gross domestic product, 3.7% of industrial and 9.2% of agricultural products.
Over the Aral sea economic region
consists of the Republic of Karakalpakstan and the Xorazm region,
which occupy 38.5% of the country's territory, where 11.1% of the population live. The share in the production of
gross domestic product in 2018 was 7.2%, industrial-7.4% and agricultural products-10.1%.
6. The choice of promising directions for the development and efficiency of agro-industrial production
should be combined with the growth of final results, a sharp increase in food products (especially cereals) and
improving the quality of products. The main prerequisites for forecasting the development of agriculture are the
analysis of the level and nodal problems of socio-economic and scientific-technical development, identification of
the main reasons that hinder the effective use of resource potential, and assessment of the possibilities for its
effective use, determining the areas of specialization of the structure of agro-industrial production
Figure 3. Changes in the dynamics of sown areas of major agricultural crops for 2015-2018.
International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
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Source:
Agriculture of Uzbekistan. 2015-2018. Statistical compendium. The State Statistics Committee of Uzbekistan.
Tashkent, 2019. P. 24, 25.
The analysis of the dynamics of agricultural indicators over the years of independence shows that along
with the positive processes for the formation of a multi - layered economy and restructuring of farms, the
diversification of agricultural production, the creation of market infrastructure in rural areas, there are also negative
trends: a reduction in the production of raw cotton, livestock products, and others (figure 3).
Objective factors and reasons for the current situation are divided into two groups. Some have a long-term
inertial character and are caused by a decrease in water availability, a decrease in natural fertility, and the wear and
tear of basic means of production, including land reclamation. Other factors are caused by the unsystematic process
of reforming the agricultural sector, real institutional changes, and low efficiency of macroeconomic, tax and credit
policies.
7. The Deformed structure of agricultural production was largely determined by the current system of
economic mechanism. In modern conditions, only a significant change will make it possible to turn the economic
mechanism into an economic lever for improving the structure of production, especially since agriculture is
considered the most mobile branch of the country's economy (figure 4).
Economic reforms in the agricultural sector involve the creation of fundamental foundations for the
development of various forms of ownership in agriculture. At the same time, the agricultural sector is searching for
the most rational forms of management that contribute to the formation of a class of owners in rural areas.
Figure 4. The share of regions in the production of certain types of agricultural products in 2018 (%).
International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
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Source:
Agriculture of Uzbekistan. 2015-2018. Statistical compendium. The State Statistics Committee of Uzbekistan.
Tashkent, 2019. Pp. 127, 135, 138, 142.
At the first stage of economic reforms, the Republic's agriculture underwent deep socio-economic
transformations:
–
the legal basis for reforming economic and agricultural relations has been created;
–
the basics of a fundamentally new management mechanism, a system of financing, insurance of agriculture,
mutual payments for manufactured products, expanded economic independence of agricultural enterprises, etc.
were developed and implemented.;
–
organizational and structural changes have been made in agriculture, and the principles and management
system of the industry are changing;
–
the structure of agriculture has been significantly changed, the cotton monopoly has been eliminated, and
the production of food products has been significantly increased [14];
–
the basis for regulating land relations has been created, and issues of increasing soil fertility are being
addressed.
In the conditions of economic liberalization, a multi-layered economy has been formed on the basis of
various forms of ownership and management, and land reform is being implemented. The non-state sector has been
widely developed in rural areas, the structure of agricultural production has changed significantly, and management
methods and systems have undergone major changes (the share of the non-state sector in agriculture in 2002 was
99.4%). All this made it possible to stabilize the level of agricultural development and increase the provision of food
to the population of the Republic at the expense of its own production, while significantly reducing its import.
As a result of the restructuring, non-state forms of management were developed: agricultural cooperatives
(shirkats), associations, tenants, agricultural firms, dehkan and farmers, etc. At the same time, the share of farms in
the gross agricultural output is still insignificant, so in 2018 this figure was about 26.0%, including 45.3% in crop
production and 4.6% in animal husbandry. An effective economic mechanism that regulates the organizational and
production activities of farms has not yet fully worked, which does not help to increase interest in the production of
certain types of agricultural products. Weak production and market infrastructure in rural areas has a particularly
negative impact on the development of economic activities of agricultural enterprises in the non-state sector.
At the same time, the analysis of the course of economic reforms in agriculture of the Republic shows that:
–
the change in the attitude to property, land, and labor through the formation of owners has not been fully
achieved;
–
market mechanisms and incentives have not yet been developed, and changes in business forms are
sometimes formal;
International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
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–
management principles have not changed enough, and local authorities continue to interfere in the
management of agricultural production;
–
insufficient attention is paid to improving the land reclamation status, problems of seed production and
livestock breeding;
–
the financial situation of many farms remains unsatisfactory.
8. Despite the objective difficulties of economic reform in Uzbekistan is being implemented in stages. The
reform determines the formation of market behavior skills for both individuals and businesses and regions. At the
same time, certain territories of the Republic differ significantly from each other in the degree of perception of
market transformations. The level of market transformations in the regions was estimated by us using the share of
each region on a national scale using indicators such as:
- number of farms and dehkan farms;
- number of small businesses;
- number of joint ventures;
- share of privatized enterprises;
- financial results of agricultural enterprises.
The results obtained make it possible to divide the regions into three groups.
The first group includes regions whose composite index is higher than the national average. This is the city
of Tashkent, the Tashkent and Fergana regions: these regions are adapting to market relations, and their reforms are
going relatively well.
The second group includes Namangan, Andijan, Bukhara, and Samarkand regions. In these regions, the
course of economic reforms can be assessed as relatively satisfactory.
Most of the regions of the Republic belong to the third group (Navoiy, Sirdaryo, Jizzakh, Surkhandarya,
Xorizm, Kashkadarya regions), where market transformations have not gained the corresponding dynamics, and in
many indicators are significantly behind the average Republican level.
The conducted ranking of regions by the level of development of agro-industrial production, although with
a high degree of conditionality, characterizes their economic condition in the context of various territories (table 1).
Table 1. Comparative economic analysis of the development of agro-industrial production in the regions in
2018.
Regions
Gross
agricultural
output
per
capita
Gross
agricultural
output per 1 ha
of acreage
Production
of
agricultural
products
per
employed person
Food production
per capita
Rating
coefficient
Thousan
d sum
rank
ing
Thousan
d sum
rank
ing
Thousan
d sum
rankin
g
Thousa
nd sum
rankin
g
average rank
1
2
3
4
5
6
7
8
9
10
11
Republic
Of
Karakalpakstan
7642,9
0,34
326,9
0,04
931,4
0,40
977,9
0,14
0,23
13
Andijon
8923,9
0,40
8047,8
1,00
1547,7
0,66
7036,3
1,00
0,76
1
Bukhara
11222,4
0,50
691,5
0,09
2106,5
0,90
1947,5
0,28
0,44
5
Jizzakh
8830,3
0,39
1038,3
0,13
2352,7
1,00
1360,6
0,19
0,43
6
Kashkadarya
8932,1
0,40
904
0,11
1408,1
0,60
909,2
0,13
0,31
11
Navoiy
22489,1
1,00
241,6
0,03
2035,8
0,87
2603
0,37
0,57
2
Namangan
6654,7
0,30
4967,6
0,62
1202,1
0,51
1517
0,22
0,41
10
Samarkand
8295,8
0,37
2212,4
0,27
1753,4
0,75
2087,6
0,30
0,42
9
Surkhandarya
6712,5
0,30
1537,6
0,19
1529,1
0,65
479,1
0,07
0,30
12
Sirdaryo
9966,6
0,44
2195,3
0,27
1597,1
0,68
2303
0,33
0,43
7
Tashkent
13333,4
0,59
3380,2
0,42
1495,4
0,64
2674
0,38
0,51
4
Fergana
6895,7
0,31
5738,6
0,71
1203,1
0,51
1240,5
0,18
0,43
8
Xorizm
8325,6
0,37
5550,7
0,69
1745,3
0,74
2145,1
0,30
0,53
3
International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 09, 2020
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Compiled by the authors using
: Social development and standard of living in Uzbekistan. 2015-2018. Statistical
compendium. The State Statistics Committee Of Uzbekistan. Tashkent, 2019. P. 23.; Agriculture of Uzbekistan. 2015-
2018. Statistical compendium. The State Statistics Committee Of Uzbekistan. Tashkent, 2019. P. 69, 76.; Uzbekistan
in numbers. 2017-2018. Statistical compendium. The State Statistics Committee Of Uzbekistan. Tashkent, 2019. P. 34.,
35, 37.
At the same time the above mentioned circumstances contribute to the activation of investment activities
in the agricultural sector:
first, in the market conditions, there is a significant increase in interest in deep processing of agricultural
products, since as the degree of its readiness increases, the revenue from sales increases many times. This
encourages potential investors to invest not only in the agricultural sector, but also in the development of small and
medium-sized industrial businesses in rural areas that can give a quick return (in the production of light industry,
construction materials, the revival of folk crafts and Handicrafts, the creation of recreation centers, etc.);
secondly, increasing the capacity of these production facilities does not require significant funds and can
give a return within one or two years;
third, the above-mentioned activities of small and medium-sized enterprises do not require long-term
training of qualified personnel and can be located in rural areas, where the bulk of labor and raw materials resources
are concentrated;
fourthly, the agricultural sector is a key part of the country's export potential, which allows us to effectively
solve the issues of providing timber, lumber, construction structures, modern equipment and technologies, including
imported ones, in the conditions of liberalization of foreign economic activity.
Regional differences in market transformations are associated with many factors. Among them – the level
of socio-economic situation of the region in the economy of the Republic, its specialization, the ratio of urban and
rural population, the degree of economic development of certain territories, etc. There is a close relationship
between the level of economic development of the region and the scale of market transformations in the regions. In
the first group were those regions that occupy a predominant position in terms of economic potential, where the
industrial base is particularly developed. The most lagging ones are those where agricultural production
predominates and the share of the rural population is high. In them, the deepening of market relations is relatively
slow.
9. Successful implementation of economic reforms in the agro-industrial complex of the Republic is an
essential condition for economic growth and effective reform of the entire national economy. Based on this, reforms
in the agricultural sector should meet the following requirements:
- be regulated with the help of economic levers and flexible, meeting regional conditions, based on objective
laws and providing for the effective functioning of its components;
- to create conditions for economic self-determination, but to allow the necessary state regulation;
– have an anti-cost character, be based on the principles of economic independence of commodity producers;
- conclude effective ways of farming that adapt to market conditions;
- have a social orientation and have a set of internal capabilities necessary for motivating productive labor
and competitive production.
Profile of poverty in Uzbekistan. According to estimates of the state statistics Committee of the Republic of
Uzbekistan in 2018, the level of poverty based on nutrition was 11.4%. The world Bank estimates that the poverty
rate based on the international level of the poverty line was 9.6%, with a poverty line of $ 3.2 per day and 36.6%
with a poverty line of $ 5.5 per day. At the same time, a high level of poverty is observed in the Samarkand,
Surkhandarya, Sirdaryo, and Andijan regions and the Republic of Karakalpakstan [15].
In recent years, significant progress has been made in creating publicly accessible large databases that can be
used to study the problem of poverty. They allow us to characterize poverty and test many hypotheses about the
factors of poverty, as well as the impact of specific programs and policy reforms on poverty. For example, by
comparing the characteristics of poor and non-poor people or households, it is possible to make a qualitative
diagnosis of the problem of poverty and determine the specific parameters of assistance to combat poverty.
As a rule, information in the following areas is used for diagnostics:
Characteristics of family members: age, gender, ethnicity, education, and health status.
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Demographic characteristics of the household: gender of the head, size and dependency ratio (number of
children and old people per adult of working age).
Property: land, livestock, tools, and social capital.
Types of activity: sector of activity, sold crops, type of employment.
Location: rural/urban, region, district.
Access to public services: electricity, water, medical facilities, schools, social assistance programs.
Access to the market and private services: distance to the market, road infrastructure, access to financial
services.
For example, Russian experience shows that the probability of a household becoming poor can be affected
by factors such as having children under 16, having unemployed family members, living in rural areas, lack of stable
income and a high share of the informal sector, weak economic development in the region (low per capita GRP and
its growth rate) [16].
Consequently, a more detailed picture of poverty in Uzbekistan can also be presented in the form of a
formed profile of household poverty, which determines the content of the main measures and recommendations to
counteract poverty in the country.
Thus, according to the results of research conducted in this area relatively recently, a representative low-
income family consists of 7 people, the average age of the head of household is more than 50 years and he does not
have a higher education. In 11%, the head of a low – income household does not have a job, and in 93%, he does not
have a higher education and only 24% have a secondary special education. 43% of low-income households do not
have a permanent job, and 11% are considered unemployed. 93% are not connected to the Central heating system,
96% do not have access to the Central Sewerage system, and 66% are not connected to the Central water supply.
The results of similar studies conducted by the Institute for forecasting and macroeconomic research with
the support of the UN development Program show that the profile of low-income households in the Republic can be
characterized as follows: low – income families with 3 or more children, with a low level of education of family
members, living in rural areas, without a working migrant abroad who can provide assistance [17].
At the same time, the state of poverty has a distinct regional specificity.
8 regions have the highest level of
poverty. These include the Republic of Karakalpakstan, Jizzakh, Kashkadarya, Navoiy, Namangan, Surkhandarya,
Sirdaryo and Xorizm regions.
These results coincide with the conclusions of the world Bank on inclusive diagnostics of the economy of
Uzbekistan in 2014, where, in particular, it is noted that the least well-off households are larger in size due to more
children, and also have fewer working adults. There is no significant difference in the status of the labor force
between groups with different levels of well-being among men. However, the labour force participation rate of the
least well-off women is significantly lower, with one in three households in the first decile being headed by a woman.
Thus, the three most important factors that determine the difference in income are: gender, the availability of
higher education, and the employment sector (industrial jobs differ with the highest wages).
These findings confirm the importance of the quality and level of education, employment, and access to
housing and basic utilities in most regions in addressing the problem of poverty in the country.
10. The recommended proposal for priority economic development of the non-irrigated zone, along with
the solution of socio - economic problems, will contribute to the rational use of water resources (through the
development of low-water-intensive industries: horticulture, viticulture, sheep breeding, pasture livestock, and
grain-growing). The implementation of these tasks requires the implementation of a whole set of measures and
justification for the active involvement of non-irrigated zone resources in economic turnover, taking into account the
environmental characteristics of these territories.
Rational use of the Republic's bioclimatic potential allows:
-
with relatively small amounts of capital investment, significantly increase production;
-
increase the growth rate of agricultural production in the Republic and its share in the national income
produced;
-
to significantly solve the problem of ensuring rational employment of labor resources and increasing the real
income of the population;
-
ensure intensive use of the agricultural potential of the non-irrigated zone, which is especially important in
conditions of water scarcity and limited opportunities to expand the area of irrigated land.
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11. The Development of market relations in the economy of Uzbekistan significantly changes the conditions
for environmental management, especially taking into account its regional specifics. Therefore, one of the typical
problematic socio-economic situations is the study of the features of modernization of the economies of different
regions [18]. First of all, keep in mind that there are different types of regions.
Typologization of districts involves the justification of the most significant features and characteristics that
are identical in several regions of the country at the same time and are important for scientific knowledge of the
patterns of formation of districts, economic practices and regional management.
Let's highlight the following approaches:
1. Typology of districts by conditions and factors of development of districts (transport system of the
district, agro-climatic, material and technical resources and innovation base, population and labor base,
development and diversification, production and market infrastructure, investment activity and
attractiveness).
2. Structural typology of districts (branch, territorial, functional, institutional).
3. Dynamic typology of districts (rates and character of development of districts by periods, stages and
years; structural changes; dynamics of particular signs of socio-economic development).
4. Typology by historical levels of socio-economic development of districts, by living standards and
income of the population.
5. Typology based on other General and specific characteristics (financial situation of districts,
development of different forms of ownership, demographic and environmental situation, depth and
quality of economic reforms, etc.)
In practice, it is necessary to know the state of socio-economic development of districts, develop projects
and pre-project justifications for complex territorial programs, solve strategic tasks and long-term development of
districts, implement the main provisions and directions of regional policy of the state.
The content of the typology is inextricably linked with the diagnosis of the state of socio-economic
development of districts. In essence, diagnostics are equally based on taking into account the typological and
individual properties of different regions of the country. Assigning an area to a particular class allows you to find
more effective ways of its long-term development that are common to a whole group of similar districts. Individual
properties of district systems expand the range of diagnostic directions, clarify and specify problem-situation and
program-target approaches in the practice of real management.
12. In the hierarchical system of economic regions, the following functions that form the corresponding
hierarchical levels can be clearly traced:
1) development of a territorial strategy of interaction between nature and society and its implementation
in the process of improving the territorial organization of social production-macro-regional level;
2) management of regional environmental management processes-interregional level;
3) greening of territorial aggregates of economic processes through mainly organizational and economic
methods-micro-regional level;
4) greening of specific economic processes through direct (technological) methods using technical means-
local level.
The analysis of territorial differences of natural character and their consideration in national economic
practice is one of the most important directions for deepening the territorial division of labor, which contributes to a
more complete and rational use of natural resources.
Differentiation of regions by environmental indicators determines the following division: depressed regions:
the Republic of Karakalpakstan, Bukhara, Sirdaryo, Xorizm regions; weakly depressed regions: Jizzakh, Kashkadarya,
Navoiy, Surkhandarya, Fergana; relatively prosperous regions: Andijan, Namangan, Samarkand, Tashkent.
Due to the large differences in the use of land and water resources in different regions, it is quite natural to
maintain a certain level of territorial differences. It should be assumed that the proportions in the use of natural and
economic resources of territories are the spatial distribution of reserves for further economic growth, which is
manifested in the optimal ratios of the system of measures and the achieved level of economic development. This
approach is aimed at determining effective ways of rational use of regional reserves in the use of land and water
resources in order to boost the economy of the Republic. This requires taking into account the proposed regional
priorities, taking into account the degree of regional depression, in the process of developing forecasts and
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programs for socio-economic development and the allocation of productive forces. This way allows us to determine
the main directions of structural changes in the economy of regions in the conditions of deepening market relations.
Based on a retrospective analysis and generalization of practical experience of reforming the agricultural
sector, territorial shifts in the development of agricultural production are justified.
The Tashkent economic region has the highest degree of involvement of natural resources in economic
turnover. The shortage of land resources is a limiting factor of irrigated agriculture. The main direction of
development of the agricultural sector of the region is the formation of highly productive agricultural (mainly food)
production, taking into account the effective use of innovative potential.
The Fergana economic region is one of the most highly developed regions of irrigated agriculture. There are
favorable conditions with water supply and a developed network of hydro-reclamation systems. The growth of
agricultural production is provided by a combination of cotton and food industries. A promising direction is the
formation of large commodity export-oriented zones based on the creation of territories with a special status (free
enterprise zones, agropolises, agroparks).
In the Central economic region, rural reforms were implemented more intensively in the Navoiy and
Samarkand regions. However, the reclamation factor (salinization of land, salinity of ground water) negatively affects
the growth of agricultural production. Along with the combination of irrigated agriculture, the priority is the
agricultural development of the non-irrigated zone (desert-pasture zone).
The southern economic region has the highest natural and climatic potential for the development of
irrigated agriculture in Uzbekistan. However, the reforms are slow, and the existing water infrastructure requires
reconstruction and modernization. A promising direction is the development of export-oriented industries (cotton
growing, production of fruits, vegetables and products of their processing).
MIrzachul (Golodnoya) economic region is characterized by a predominance of new development zones
with a highly mechanized complex for the cultivation of cotton crops. A network of major engineering water
infrastructure is located in this area. Despite the large potential opportunities, there is a decrease in the efficiency of
production on irrigated land in this region. In this regard, it is planned to implement a special program for the
reconstruction of the water management system with the definition of priority areas of reclamation work with the
development of its stages and the mechanism for their implementation.
Along the Aral sea economic region, which is classified as a negative region, the existing natural and
economic potential is not used enough. The existing water infrastructure network requires radical reconstruction. In
the region, it is necessary to change the structure of agricultural production (Republic of Karakalpakstan) by reducing
the acreage of raw cotton in inefficient areas of cultivation with re-specialization in the production of livestock
products.
13. The Development of market relations in the regional agro-industrial complex is associated with the
creation of a fully functioning cotton market. The development of market relations in the absence of commodity
markets is almost impossible. We believe that the absence of a domestic cotton market will significantly counteract
the forces of the law of supply and demand, which, in turn, will affect the efficiency of the industry.
Among the most important elements of economic methods of managing the development of cotton
production is the degree of state regulation of the functioning of the industry. In this case, our Republic faces the
task of moving away from centralized management to a system of methods of interaction between state and market
regulation of the development of the industry.
The experience of a number of foreign countries indicates the possibility, and in some cases, the need for
state regulation in the development of cotton production. At the same time, international experience testifies to the
effectiveness of balanced state intervention, which is carried out within the framework of market relations and
simultaneously with the granting of an ever-increasing right of self-activity to economic entities.
The novelty of the conditions and problems associated with the functioning of the Republic's cotton
production at the present stage requires a deeper study and consideration of trends in the world cotton market.
In this regard, the state policy in the field of cotton can be represented by the following types: a) policies to
increase incomes of producers with the least impact on the market price level, b) policies to control the
development of cotton sub-sector through intensive state regulation, c) the policy of regulation of domestic prices of
cotton in order to increase the incomes of producers.
The clearly identified course of departure from the concept of monopolistic cotton production both within
the agricultural sector and throughout the economy gives clear signals that in the future it is quite possible to expect
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some further decrease in acreage with stabilization at a certain level. In this regard, there will be an urgent need for
the full use of intensive factors in cotton production. Further intensification of the industry and measures to equalize
the efficiency of cotton production, both by region and by individual producers, will contribute to significant
economic benefits.
The development of cotton production in many countries is characterized by the presence of a domestic
cotton market and competitive markets for resources and services used in the production and processing of cotton.
This circumstance provides an opportunity to choose between state obligations and the possibility of independent
actions in the market. This primarily ensures that there is competition, which, as we know, is one of the
prerequisites for ensuring the efficiency of this industry. In this regard, the desire to implement market
modernization of the industry and the entire economy allows us to hope for the earliest possible development of an
alternative mechanism to ensure efficiency in the industry.
14. At the current stage of deepening economic reforms, state obligations (contracts) create obstacles to
the development of an efficient market and distort the market requirements that farmers and processors receive. In
addition, they involve state structures in activities that are clearly the role of the private sector. Here you can use an
alternative strategy that would be more effective in management and could be stimulating for producers and
processors. This strategy can accelerate the privatization, development and use of the contract system. Some
activities of state structures can be transferred to the private sector, and market prices can be considered as internal
decisions of the agricultural sector. It is assumed that the state should bear the cost of covering some of the costs of
cotton production and processing. Currently, this is done at the expense of low payments to farms for products and
is indirectly subsidized. The alternative proposed increases the economic interest of agricultural producers and
reduces the flow of subsidies. Moreover, prices are used as a market incentive.
It is assumed that the state will calculate and give tasks for the production of a certain amount of cotton. At
the moment, this amount is distributed by regions, and then by farms. At present, ensuring the state task entails its
implementation in terms of output for all farms, without taking into account the efficiency of production. An
alternative strategy allows you to concentrate production in regions and farms that have a comparative advantage
for this type of product. This will allow efficient use of land and water resources and provide real market incentives
for organizing production. The following types of alternatives are offered:
Contracts.
The amount of cotton included in the state obligation should be divided into small-batches.
Contracts will be defined for producers, processors, certain purchasing organizations and transportation structures.
The contract will determine the timing, quality, location, and price changes due to inflation.
Tender.
The state announces existing contracts and puts them up for tender among producers and
processors. Producers and processors must decide on the number of contracts they want to fulfill and the price at
which they are willing to fulfill the contract. The government selects those candidates who offer a lower and more
realistic price.
Public procurement.
By the time the products are delivered, government agencies will send the products
to their respective needs under signed contracts and pay the producers and processors the amount stipulated in the
contract.
15.Traditionally, the agri-food sector in developing countries has played a significant role in the national
economy, and the inefficiency of the agricultural sector has been a long-standing problem for almost all of them,
which was designed to solve permanent "improvement of the economic mechanism of the agro-industrial complex".
In this case, the urgency of agrarian reform was due to two main reasons:
the important role of agriculture in the national economy and the inadequacy of the existing structure to
the new macroeconomic situation, high dependence on subsidies of the sector in most countries,
production inefficiency;
loss of food markets within emerging economies.
Consequently, the goal of reforms in the agricultural sector of the developing economy was to create a
market-oriented sector, its adaptation to the new macroeconomic situation. Within the framework of agrarian
reforms, three main tasks were solved:
structural restructuring of the agricultural sector, land privatization and reorganization of agricultural
production units;
creation of a new market infrastructure for the agricultural sector, privatization in various areas of
agriculture, market liberalization;
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formation of an adequate state agri-food policy.
The above tasks are closely interrelated and require a one-time solution. Significant progress in solving one
of them cannot compensate for the lag in solving the other two. On the other hand, agricultural transformations
depend very much on the overall macroeconomic situation in the country - without economic stabilization, the
effectiveness of agricultural reforms is impossible.
Conclusion.
At the end of the study, you can make conclusions and suggestions, the main content of which
is as follows:
1. The most Important problem at the present stage of development of the Republic is the transition to
sustainable economic growth through overcoming structural imbalances in the agricultural sector of
the economy. Research has shown that agro-industrial production in Uzbekistan has a significant
potential for economic growth based on:
–
development of agricultural policy as a set of principles and regulatory tools used by the state aimed at
implementing short - and long-term goals of agribusiness development;
–
development of an indicative planning system and a software approach for solving functional and target
tasks for the development of agro-industrial production;
–
transformation of the agricultural sector through a land-institutional and organizational structure that is
adequate to the market;
–
adaptation of agricultural structures in the organic interaction of state and market regulation by creating an
adequate legislative framework, creating a multi-layered economy, and privatizing service and processing
enterprises;
–
to identify the causes and features of differentiation of the results of agrarian reforms, which ensures the
unity of comparative analysis of regional agricultural development models.
2. The Unity and effectiveness of the economic mechanism require coordination of macroeconomic policy
with the micro-and regional level, taking into account the peculiarities of reproduction and the degree of
susceptibility of regions to changes. This requires the development of a special agricultural policy in relation to
groups of regions with similar conditions, which implies:
–
the need to typologize regions in order to form a differentiated agricultural policy depending on their
belonging to problem regions;
–
development of indicators for assessing the potential of agriculture in the region based on the allocation of
resource, agro-climatic, economic and production components, the close relationship of which is an objective
basis for the formation of regional agricultural policy;
–
the need to disclose specific features of the development of regional agro-industrial production, including:
deformed production structure, low efficiency of land and water resources, environmental problems,
redundancy of labor resources, underdeveloped infrastructure, and others.
The world experience of regional development shows that the rapid increase in productivity of the
agricultural sector is associated with the elimination of institutional, price and trade barriers that hinder the growth
of efficiency.
At the same time, different levels of formation of the agricultural market (producers, region, state)
determine the specifics of the economic mechanism of regulation, the main elements of which are: at the macro
level – the mechanism for limiting monopoly by the state, at the micro level – the mechanism for regulating the
regional market by territorial authorities. The current economic mechanism for regulating regional development
does not fully meet the modern requirements of management in market conditions, which need to be addressed:
–
formation of regulated production and economic relations that provide for appropriate state economic
intervention in economic activities and support for agricultural producers during adverse external factors
(protectionism);
–
development of a system of institutional structures that are formed on the basis of independent
management and cooperation of commodity producers, various forms of management, taking into account
regional characteristics;
–
formation of a system of balancing production goals at various levels (macro and micro, regional) and
resource opportunities for their implementation in connection with regional priorities for the development
of agricultural production, focused on the formation of a balanced market;
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–
the transition to the implementation of state contractual obligations for the most important agricultural
products on the basis of a market mechanism opens up the prospect of resolving the contradictions between
the increase in demand and supply;
–
formation of regional competitive commodity markets for the most important types of agricultural products,
which will contribute to the concentration of production in the most efficient zones, taking into account
regional factors of production;
–
formation of territories with a special status in order to create a mechanism for receptivity to innovation and
increase the competitiveness of producers, as well as effective mechanisms for supporting entrepreneurial
initiatives, primarily contributing to solving social problems in the field;
–
improving the effectiveness of marketing research for the development of international and cross-border
trade and the dynamic development of interregional relations;
–
encouraging structural reforms aimed at affordable employment, progressive taxation, social spending, and
minimum wage policies;
–
development of mainly labor-intensive sectors and industries of the economy, both relatively low-
productivity industries (agriculture, food and light industry) and high-tech knowledge-intensive industries
(production of computers, office equipment, certain types of industrial electrical equipment, electrical
products, etc.);
–
development of small businesses in the field of services, in particular, servicing entrepreneurs in agricultural
production, including services for procurement and storage of products, servicing agricultural machinery,
services for the sale of feed and meal, providing fertilizers and plant protection, veterinary services.
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