Horizon: Journal of Humanity and Artificial Intelligence
ISSN: 2835-3064
Volume: 02 Issue: 04 | 2023
Page | 68
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THE ROLE OF THE SERVICE SECTOR IN THE COUNTRY'S
DEVELOPMENT
Urunbayeva Yulduz Pirnazarovna
PhD, Associate Professor, Samarkand Institute of Economics and Service
-----------------------------------------------------------------------------------------------------------------------------
Abstract
The article focuses on the factors affecting the improvement of the living standard of the population
through the development of the service sector.
Keywords:
standard of living of the population, quality of life, demand, consumption, savings of the
population, wages, income of the population.
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In the Address of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis on
January 24, 2020, the programmatic and targeted tasks that need to be implemented in the economic
sphere in 2020 and the following years were defined. One of the first tasks mentioned in the petition was
that "in 2020, ensuring macroeconomic stability and curbing inflation is our main task in the process of
economic reforms"[1]. To fulfill this task, it is necessary to develop the service sector. The share of
services in the country's gross domestic product is significant.
The term "service" refers to the labor of a certain person for another person (the state). But if it is
analyzed theoretically, it has its definition. If you pay attention to the works of our scientists in this
regard, you will see that they have different views. In particular, Mukhammedov M.M. defines service
provision as follows: "The service sector is defined as an area that directly and significantly affects the
health, mood, attitude to work of the population, the productivity of workers, the level of satisfaction
and happiness with their lives, the life and development of production forces in general" [2] those who
gave. Q. J. Mirzaev defined the service as follows. The term "service" refers to income-generating
actions and activities aimed at satisfying the consumption needs and material and spiritual interests of
people in production and non-production facilities [3].
If we look at the period of development of service in the history of mankind, service has been used since
the emergence of human society in order to ensure continuous progress in human daily activities, in
constant effort to improve it, creativity and on this basis to achieve satisfaction of all needs. Therefore, it
is necessary to consider service as a philosophical category, knowing that it is a process, and the process
is an action, not simply, but as an action aimed at the development and prosperity of the human society.
Table 1. Changes in the indicators of employment of residents of the Republic of Uzbekistan and
Samarkand region in economic sectors in 2018-2020*
№
Indicators
Republic of Uzbekistan
Samarkand region
Years
2018
2019
2020
2018
2019
2020
1
Permanent population
(thousands)
32656,7
33255,5
33 905,2
3720,1
3 798,9
3 877,4
2
Economically active
population (thousands)
14641,7
14876,4
14797,9
1620,6
1604,2
1585,4
3
The share of the permanently
active population (in percent
44,8
44,7
43,6
43,6
42,2
40,9
4
Population employed in the
13273,1
13541,1
13239,6
1463,3
1455,8
1410,9
Horizon: Journal of Humanity and Artificial Intelligence
ISSN: 2835-3064
Volume: 02 Issue: 04 | 2023
Page | 69
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economy (thousands of
people)
5
Share of the economically
active population (in percent)
90,7
91,0
89,5
90,3
90,7
89,0
Including: articles on economic sectors
6
In industry (thousand
people)
1802,9
1821,5
1789,7
196,1
197,5
191,5
7
Share of the employed
population in the economy
(in percent)
13,6
13,5
13,5
13,4
13,6
13,6
8
In the village, forest and
fishery (thousand people)
3537,2
3544,6
3560,0
396,6
393,1
392,2
9
Share of the employed
population in the economy
(in percent)
26,6
26,2
26,9
27,1
27,0
27,8
10
In the construction industry
(thousand people)
1205,5
1324,6
1267,8
147,8
144,1
138,3
11
Share of the employed
population in the economy
(in percent)
9,1
9,8
9,6
10,1
9,9
9,8
12
In service (thousands of
people)
6727,5
6850,4
6622,0
722,9
720,6
688,9
13
Share of the employed
population in the economy
(in percent)
50,7
50,6
50,0
49,4
49,5
48,8
Most importantly, the need for services differs sharply from the need for material services in terms of
their nature and importance in the development of a person as a human being. Modernization and re-
equipment of service sector networks, increasing the quality of services based on providing them with
qualified personnel, expanding the range of services based on the diversification of this sector,
producing new types of services, rapidly increasing the volume of services is an important condition for
fully meeting the needs of the population.
In the American scientist A. Maslow's pyramid, physiological (material) needs are given the first place
in terms of importance. Undoubtedly, such needs are characteristic of any society and must be satisfied
at the first level, regardless of the form of the social system and the level of development of the
productive forces. Humans, as conscious moving living beings, must first of all meet their primary
needs, i.e., eat food, wear clothes, and have shelter. Only then will they be able to engage in education,
culture, art, travel, etc. In this pyramid, the needs for various social services also occupy an important
place. But the important aspect of the matter is that as the productive forces develop and the population's
income and standard of living increase, its need for services develops faster than its need for material
goods.
Another characteristic of services is that the formation of incomes of people employed in the service
sector is related to the content and nature of work. The ever-increasing and improvement of the needs
for services is reflected in the structural changes in the employment of the population, more precisely, in
the constant increase of the share of services in its employment (Table 1).
According to the data presented in Table 1 above, the permanent population of Samarkand region was
3720.1 thousand people in 2018, and by 2020 it will be 3877.4 thousand people, i.e. (157.3 thousand
people) increased by 10.4 percent.
Economically active population is a certain part of the population that meets the demand for labor force
in production and service. This creates a special basis for economic growth and solving employment
Horizon: Journal of Humanity and Artificial Intelligence
ISSN: 2835-3064
Volume: 02 Issue: 04 | 2023
Page | 70
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problems. In 2018, the economically active population amounted to 1620.6 thousand people, which
increased by (35.2 thousand people) compared to 2020.
In 2018, 50.6 percent of the employed population in the economy, i.e. 740.5 thousand people (industry,
agriculture, forestry and fisheries, construction) were employed in the production sector, while 49.4
percent, i.e. 722.9 thousand people were employed in the service sector. In 2020, respectively (51.2
percent - 48.8 percent), 688.9 thousand people are employed in the service sector. Of course, we can say
that the pandemic has had an impact on this industry as well. The decrease in the number of people
employed in the service sector in the region's economy has led to a decrease in the volume of the gross
domestic (territorial) product and a significant decrease in the weight of the service sector in its
composition. Such changes in the structure of employment of the population can be assessed as the
reason that arose under the influence of the pandemic.
We found it necessary to compare it with the indicators of the republic in order to evaluate the
possibilities and prospects of increasing the employment of the population in the Samarkand region by
industry and sectors. As a result of the comparison, it was shown that lower levels were achieved in the
service industry in Samarkand region compared to the republic.
In addition, the share of the population employed in agriculture in the region is almost 1.0 points higher
than the national average. It is worth noting that as the material and technical base of agriculture is
strengthened and labor productivity increases, the number of people employed in this sector will
continue to decrease. If we bring the share of people employed in agriculture in Samarkand region (27.8
percent) to the average level of the republic (26.9 percent), 32,000 people may lose their jobs in these
sectors. And those who are out of work are employed in the service industry.
At the current stage of society's development, employment of the able-bodied and economically active
population is one of the most urgent, acute socio-economic problems for all countries. For Uzbekistan,
which is very rich in labor resources and has a huge labor potential, it has become a very acute problem
to provide employment to the population, to create an opportunity for every individual who wants to
work to participate in social production.
In the conditions of the market economy, on the basis of entrepreneurial initiative, the achievements of
scientific and technical progress are widely introduced into production and legally lead to a deepening
of the division of labor and a rapid increase in productivity. In general, modern production, which is
adapted to economical use of resources and development on an intensive basis, cannot be realized and
developed without a continuous increase in labor productivity.
The policy of modernization and technical re-equipment of the economy, which has been consistently
carried out in Uzbekistan in recent years, and the increasingly developing innovative processes have a
great positive effect on the productivity of live laborAs a result of the growth of social labor
productivity, the share of the material production sector in the gross domestic product will decrease.
(Table 2).
Table 2. The share of economic sectors in the gross domestic product in 2000-2020 (in percent)*
In addition, employment problems in Uzbekistan have become more acute due to workers who were
already overworked in production (especially in agriculture), but gradually lost their jobs as market
№
Networks
Years
2000 2005 2006 2007 2008 2009 2010 2015 2020
1
GDP, total,
including:
100
100
100
100
100
100
100
100
100
2
Industry
14,2
21,1
21,8
24,0
22,3
23,6
26,7
25,7
26,4
3
Agriculture
30,1
26,3
25,1
21,7
19,4
18,2
19,8
18,3
26,1
4
Construction
6,0
4,8
5,1
5,5
5,6
5,9
6,6
7,3
6,4
5
Service
37,0
37,0
39,5
42,5
45,3
47,2
46,9
48,7
33,5
6
Net taxes
12,7
10,8
8,5
6,3
7,4
6,7
9,2
8,8
7,6
Horizon: Journal of Humanity and Artificial Intelligence
ISSN: 2835-3064
Volume: 02 Issue: 04 | 2023
Page | 71
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conditions strengthened. In the conditions of the planned economy, the problem of unemployment was
solved by unreasonably increasing unproductive, ineffective jobs, involving the labor force in any way
to social production. In the conditions of the market economy, as we mentioned above, the need for
effective use of all resources, including labor resources, increases. In such circumstances, it is inevitable
that the jobs that were unjustifiably created in the previous periods will be canceled and the workers
"employed" in them will be reduced and, as a result, they will be unemployed.
Summarizing the above, we identified the main reasons for the disparity between labor supply and
demand in the labor market in Uzbekistan. In our opinion, these are: firstly, the continuous increase of
social labor productivity as a result of scientific and technical progress; secondly, the elimination of
previously created surplus jobs in social production; thirdly, the complex demographic situation that has
arisen in the country and is still present to some extent [4].
In order to solve the problems of raising the standard of living of the population in the society, serious
attention is paid to determining the strata of the population living in a state of need and continuously
reducing their number (iron notebook). In our opinion, families were discussed, they were divided into
three categories and specific measures were developed for each category, including:
In order to use the services provided by the state for low-income families, the first category includes
families who hide their income and as a result receive social allowances (abroad, market, household
livestock and other income) without justification.
In the second category, the families included in the list of low-income families, but who own land plots
and have the opportunity to earn income from their use, as low-income families, are inappropriately
using state budget funds.
The third category includes families (mothers) who are disabled, single, who have lost their
breadwinner, who are chronically ill, and who are raising their children under 16 years of age. As a
result, benefits for the treatment of chronically ill citizens will be increased from the funds saved from
families receiving social allowances in the first and second categories to social protection of families in
the third category.
Carrying out practical studies to find solutions to the problems facing the industry, evaluating the
current situation in practice, identifying achievements and shortcomings in the country is a criterion for
the socio-economic development of the country.
References
1.
Address of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Oliy Majlis on
January 24, 2020. // "Khalk Sozi" newspaper. January 25, 2020. No. 19. Pages 1-4.
2.
Q. J. Mirzaev. M.Q Pardaev "Economy of services" "ECONOMY-FINANCE" 2014. - 376 p. p. 149
3.
Mukhammedov M. and others "Theoretical foundations of the development of the service sector and
tourism" - S.: Zarafshon 2017.-299 p.
4.
Urunbaeva Yu. P. The service sector and the standard of living of the population: interrelationship
and prospects for development. Monograph. Tashkent.: "Subject", 2013.- 156 p.
