Thematics Journal of Economics
Vol-7-Issue-2-2021
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The content of the service sector and the socio-economic value of its rapid
development in the state of today's pandemic
Yulduz Pirnazarova Urinboeva,
Associate Professor of Samarkand Institute of Economics and Service, Doctor of
Philosophy in Economics,
Burkhonov Bekzod Bokhodirovich,
Student of Samarkand Institute of Economics and Service.
Abstract.
The article emphasizes the essence of the service sector and the
socio-economic importance of its rapid development. The scientific article also
provides measures to protect the service sector in Uzbekistan from crises in the
context of a pandemic. As a result of the analysis, the authors formulate the following
definition: service is a valuable time spent on the maximum satisfaction of the needs
of the population, state and society, living standards (health, cultural recreation,
scientific potential, mood, daily household worries of all segments of the population)
is an activity that helps to save (depending on the need).
Keywords:
standard of living, real income, imports of products, goods,
services, new technologies, private entrepreneurship, government, society needs,
services, pandemic.
Introduction
Consistent reforms in the country in the context of the pandemic, measures
aimed at restoring sustainable economic growth, modernization of society,
liberalization of the economy are leading to significant quantitative and qualitative
changes in the national economy. The main goal of the ongoing reforms and radical
changes in the path of socio-economic development is to continuously improve the
living standards of the country's population and restore it to its previous state. In the
implementation of this important task, that is, in the formation of a decent standard of
Thematics Journal of Economics
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living and quality of life for the population of the country, the service sector has a
special role.
Accelerated development of the service sector in the country and a sharp
increase in its share in GDP allow solving a number of important socio-economic
problems, ie employment, increasing real incomes, improving the welfare of all
segments of the population. One of the peculiarities of the development of the
national economy of Uzbekistan is that the share of services in the country's GDP has
been growing from year to year, but during the pandemic, as in other economic
sectors, there is a significant decline in services. In 2015, this figure was 48.9 percent,
and by 2020 it will be 33.5 percent , the share of services in GDP (47.2-30.9%,
respectively) in Samarkand region. The rapid development of this sector in the future
is one of the key components of the country's long-term macroeconomic policy. The
fact that the President of the Republic of Uzbekistan Sh.M.Mirziyoev raised the issue
of increasing the share of tourism services in GDP to 28% by 2035 is a clear proof of
our opinion.
Today, innovation processes in service enterprises in our country are
developing slowly, the population's demand for services is not sufficiently met. This,
in turn, has a negative impact on the formation and development of the service sector,
which to some extent reduces its impact on the living standards of the population. In
our opinion, the existence of such a situation is determined by the lack of a
scientifically based, systematic methodology to address the above problems, in
particular, to improve the welfare of the population through the rapid development of
services and improving their quality. The lack of a unified concept for the gradual
development of the system of services to all segments of the population in accordance
with market relations and thus increase the welfare of the entire population of the
country also requires extensive research in this area.
Given the above, it can be noted that one of the most pressing issues is a
comprehensive and in-depth analysis of the living standards of the population based
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on the development of the service sector, the development of scientifically based
proposals and practical recommendations to improve its theoretical and
methodological basis.
Main part
Today, government reforms to address the effects of the epidemic and the
coronavirus pandemic are bearing fruit. However, it is natural that the negative
developments in the economy with the implementation of reforms will affect the
socio-economic development of the country, the living standards of the population
and the level of economic security of the country. According to the International
Monetary Fund's baseline forecasts based on the expectations of the cessation of
coronavirus pandemic expansion and the gradual recovery of economic activity from
the second half of the year, the world economy will shrink by 3.0% in 2020 [1]. In
our country, too, the coronavirus pandemic has had a significant impact on the
economy, causing a slowdown in economic growth.
In his address to the Oliy Majlis of the Republic of Uzbekistan on December
29, 2020, President Shavkat Mirziyoyev noted that this year, unlike previous years,
coincided with a difficult period, a global catastrophe called the coronavirus
pandemic. In order to overcome the existing problems, the Decree "On additional
measures to support the population, sectors of the economy and businesses during the
coronavirus pandemic" [3] provision, as well as special attention to the support of
some business entities.
At the current stage of development of society, the economy has become a
complex of industries that include not only production, but also thousands of
services. The national economy, which has been established in the years of
independence of the Republic of Uzbekistan, the new economic relations that are
emerging as a result of consistent economic reforms, create favorable conditions for
further development of the service sector.
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Today, this sector is developing rapidly in the national economy, giving high
results in improving the living standards and quality of life. It is one of the main
components of the social and international division of labor. The service sector
provides opportunities for the development of other industries, coordinating the
creation of new jobs, the introduction and improvement of new technologies, the
development of private entrepreneurship and increasing competitiveness.
At the current stage of development of society, the service sector is an integral
part of the complex of our economy, participates in the general system of economic
relations and is subject to all existing economic laws. The size of the industry, its
share in key macroeconomic indicators, is determined by the volume of services per
capita. The service sector has a great positive impact on the economy of a particular
country and directly contributes to improving the living standards of the population.
Consequently, in developed countries, the share of industry in GDP is 80 percent [1],
75% in total employment and 90% in total enterprises [4].
Uzbekistan has created a legal framework for radical reform of the service
sector, improving their activities, enhancing their stabilizing role, using them as a
factor in building an innovative economy and ensuring competitiveness. Advanced
scientific and technical achievements have been introduced in the service sector,
expanded professional and retraining of service providers, strengthened mechanisms
for organizing cooperation with large and small service enterprises on the basis of
developing contractual relations, improved participation in corporate relations.
However, despite the tremendous progress made in the development of the service
sector in the context of the pandemic, the development of the services sector is
lagging behind in terms of the volume and quality of services provided. Therefore,
special attention is paid to modern research, which creates the basis for further
development of the service sector, increasing its share in the economy, providing
employment and increasing incomes to improve living standards and quality of life.
The Action Strategy for the five priority areas of development of the Republic of
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Uzbekistan for 2017-2021 identifies important tasks for "accelerated development of
the service sector, increasing the role and share of services in GDP" [5]. The effective
implementation of these tasks determines the urgency of work on the development of
the service sector.
Improving the well-being of the population is at the heart of all the problems of
any economic system, and all efforts in the field of socio-economic development are
ultimately aimed at solving this main problem. Therefore, issues of social welfare and
living standards have attracted the attention of many economists since ancient times.
Well-known economists such as A.Smith, V.M.Jerebin, A.N.Romanov, N.A.Gorelov
[6,7,8] have made a huge contribution to the formation of the theory of social welfare
and living standards. It is difficult to create a system of modern scientific views on
the welfare and standard of living of the population without their theoretical
approaches and theoretical views on social welfare and its achievement.
As a result of our theoretical research in this area, human development has
three important features of the current stage in solving problems related to improving
living standards: exerts its effects. Today, Uzbekistan is an integral part of the
international community and the global financial and economic market. This is
evidenced by the growing ties with the outside world, the implementation of
programs for the development, modernization, technical and technological re-
equipment of economic sectors with the support of developed countries, Uzbekistan's
integration into the world market, imports and exports of goods and services. has a
great influence on the formation of living standards and quality of life of the
population of each country. The second is the escalation of environmental problems
(epidemics and pandemics). As a result, there is a growing need to adhere to the
concept of sustainable development, ensuring national and international
environmental security, ensuring the equality of interests of present and future
generations in solving the problems of resource use in order to develop the economy
at a rapid pace. Thirdly, it is necessary to take into account the formation of a socially
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oriented market economy model, the strengthening of the principles of social justice
in the distribution, and the fact that rational social policy is becoming a key factor in
economic development. This requires the support of the needy strata of the
population and socially vulnerable groups (the disabled, young people, women (those
infected with Covid-19 infection)) and social protection from market forces. In turn,
the rise in living standards of the general population will strengthen its labor and
social activities, the role and importance of the human factor in production will
increase, participation in the development of the country's economy will increase.
In order to clarify the theoretical problem posed, it is important to dwell in
more detail on the content of each direction and the nature of the mechanisms of
influence. The main goal of social production and human economic activity is to
meet the constantly growing needs of the population. The need to meet the needs of
the population also applies to the services sector. The need for a variety of services is
an integral part of the general needs of the population and their full satisfaction is the
main function of social production.
Therefore, we can say that one of the important features of postindustrial
society is that the position of the service sector in the national economy has
strengthened and become a leading factor in expanded reproduction. The service
sector is a product of the interdependent development of various economic, social,
political, natural and cultural processes, and, ultimately, is reflected in the
improvement of living standards. In turn, it is expedient to recognize that raising the
standard of living of each person to live in favorable conditions, the natural desire to
fully meet their material and spiritual needs is an important factor driving society's
development and the entire system of economic activity.
Although services emerged in ancient times as an important means of meeting
human needs, scientific views on them were initially formed in the works of
representatives of classical economic theory. In order to reveal the essence of the
concept of services and to justify their radical difference from the goods in the form
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of goods, all the delicacies consumed by man were divided into two types: material
delicacies and intangible delicacies. It should be noted that the representatives of
economic education considered all services as intangible benefits and for the first
time in the history of science laid the foundation for the formation of the scientific
concept of services. For example, the classical economist A. Smith introduced the
concepts of "productive labor" and "unproductive labor" in order to fully reveal the
economic content of the benefits of the form of service and to solve the problem of its
view as a source of social wealth of the country [6]. A material product, all kinds of
labor that create material wealth, are productive labor, and this labor creates new
value. Also, the labor of those engaged in service is unproductive, and this labor does
not create new value, but serves to assimilate the value created in material
production.
Material blessings in the form of human life activities and lifestyles create
material comforts for a person. But for a person, for his life, in what period (epidemic
and coronavirus pandemic), in what country he lives, the situation in that country, the
provision of civil and military security, the use of state property and free education,
free health care, the right to judicial protection, etc. is very important [9].
Modern theoretical knowledge about the field of services has moved far from
the content of the initial idea and scientific views about them. The huge economic
potential of the service sector today, as well as its position in the national economy of
the country and the theoretical knowledge of this sector is the result of centuries of
evolutionary development.
For example, F. Kotler commented on the nature of services: services are any
activity or benefit that one party can offer to another party, a useful action that does
not allow one to own anything [10]. There are also definitions that correspond to the
content of this idea, it is important to dwell on them separately. Services are
intangible benefits that are purchased by consumers but are alien to the form of
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ownership [11]. Service is a profitable concept or (action) relation that does not have
the ability to acquire ownership of property as any material object [12].
In our opinion, all the above definitions and ideas do not fully reveal the socio-
economic nature of the concept of "service", but are aimed at substantiating an
important aspect of this economic concept, which is that services, like all material
goods, meet human needs. The main shortcoming of these definitions, in our view, is
that if we rely on them to explain the essence of the concept of "service", then we
have to consider all material, that is, packaged blessings as service. "Every industry,
big or small, provides services," Levitt said. Continuing this idea, F. Kotler gives a
new meaning to this approach, stating that "In fact, the customer, who is the buyer of
the goods, buys the service in the form of goods offered to him. Ultimately,
everything depends on the service" [10].
Conclusion and recommendations
Hence, from the above, we can conclude that service is productive and conscious
labor resulting from the skill of the employee. Based on the content of the above ideas,
the following can be defined in terms of clarifying these concepts.
Service is an activity aimed at maximizing the needs of the population, the state
and society, helping to improve living standards (health, cultural recreation, scientific
potential, mood, saving valuable time spent on daily household worries (depending on
need)).
Recognizing that services are a separate process, it can be said that in fact they
are aimed at improving the living standards of the population.
References
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