Web of Synergy:International Interdisciplinary Research Journal
ISSN:
2835-3013
©
2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
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510
The Role of the Service Sector in the Formation of the Digital
Economy
Urunbaeva Yulduz Pirnazarovna
PhD, associate professor, Samarkand Institute of Economics and Service
ABSTRACT
In the context of globalization, the development of the service sector, migration,
tourism, international trade, foreign investment, and communication means
affects the growth rate of any national economy. Today, Uzbekistan is an
integral part of the international community and the global financial and
economic market. We can clearly see the confirmation of this in the fact that our
relations with the outside world are expanding more and more, in the
implementation of programs for the development, modernization, technical and
technological re-equipment of economic sectors with the support of leading
developed countries, in the integration of the service sector of Uzbekistan. We
can call these the foundations of the Third Renaissance.
The rapid development of the service sector in our republic and the sharp increase of its share in
the gross domestic product make it possible to solve a number of important social and economic
problems, that is, to provide employment to the population, to increase the real income of people,
and to improve the well-being of all layers of the population. One of the distinctive features of
the development of the national economy of Uzbekistan is that the share of services in the
country's gross domestic product is increasing year by year. In 2015, this indicator was 48.9
percent, and by 2021 it will be 35.5 percent. In the Samarkand region, the share of services in the
gross domestic product (47.2-32.9, respectively) was percent. Rapid development of this sector
in the future is one of the main components of the country's long-term macroeconomic policy.
The fact that the President of the Republic of Uzbekistan, Sh.M. Mirziyoyev, raised the issue of
increasing the share of tourism services to 28% in the gross domestic product by 2035 is a clear
proof of our opinion.
Today, innovative processes in service enterprises in our country are developing more slowly,
Keywords
:
national economy,
post-industrial society,
economic system, material
production, service provision,
paid services, non-paid
services, competition, digital
economy, innovation,
modernization, standard of
living, quality of life, pandemic,
demand, consumption,
population savings, wages,
population income
.
Received:
March 28, 2023
Accepted:
April 29, 2023
Published:
May 30, 2023
Article Information
WEB OF SYNERGY
:
International Interdisciplinary Research Journal
Volume 2 Issue 5, Year 2023 ISSN: 2835-3013
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Web of Synergy:International Interdisciplinary Research Journal
ISSN:
2835-3013
©
2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
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511
the demands of the population for service services are not sufficiently met. This, in turn, has a
negative impact on the formation and development of the service sector, reducing its impact on
the standard of living of the population to a certain extent. In our opinion, the existence of such a
situation is determined by the lack of development of a scientifically based, systematic
methodology for solving the above-mentioned problems, in particular, for increasing the well-
being of the population by rapidly developing the service sector and raising their quality to high
levels. The lack of development of a single concept for the gradual development of the service
system for all layers of the population in accordance with market relations and thus the
improvement of the living conditions of the entire population of the country requires the need to
carry out extensive scientific and research work in this direction.
Taking into account the above, it can be noted that a wide and deep analysis of the increase in
the living standard of the population based on the development of the service sector, the
development of scientifically based proposals and practical recommendations for improving its
theoretical and methodological foundations is one of the most urgent issues.
It is natural that the negative situations that occurred in the economy with the implementation of
reforms will affect the socio-economic development of the country, the standard of living of the
population and the level of economic security of the country. According to the basic forecasts of
the International Monetary Fund, based on the assumptions of the cessation of the expansion of
the coronavirus pandemic and the gradual recovery of economic activity from the second half of
the year, the world economy shows a 3.0% decrease in the gross domestic product in 2021
1
. In
our country, the coronavirus pandemic has had a significant impact on the economy, causing a
decrease in economic growth.
In his address to the Parliament of the Republic of Uzbekistan on December 29, 2020, President
Shavkat Mirziyoyev emphasized that, unlike previous years, this year has coincided with a
difficult period, that the whole of humanity has experienced the global disaster of the
coronavirus pandemic, and that such fluctuations in the economy have not occurred in a hundred
years
2
. In order to eliminate the problems that have arisen, the Decree "On additional measures
to support the population, economic sectors and business entities during the coronavirus
pandemic"
3
strongly strengthens the social protection of the population during the fight against
the spread of the coronavirus infection and ensures the stability of the operation of economic
sectors, as well as , requires paying special attention to the support of certain economic entities.
At the current stage of society's development, the economy has become a complex of industries
that emdiv not only production, but also thousands of services. The national economy that has
been settling in the years of independence in the Republic of Uzbekistan, the new economic
relations that are emerging as the final result of the consistently implemented economic reforms
create favorable opportunities for the further development of the service sector. Today, this
industry is rapidly developing the national economy, and is highly effective in improving the
quality and standard of living of the population. It is one of the main components of the social
and international division of labor. The service sector provides an opportunity for the
development of other sectors, the coordination of new job creation, the introduction and
improvement of new technologies, the development of private entrepreneurship and the increase
of competitiveness. At the current stage of society's development, the service sector is a
component of the complex of our economy, participates in the general system of economic
relations and follows all existing economic laws. The scale of the industry, its share in important
macroeconomic indicators, is determined by the volume of services per capita. The service sector
1
http://bukvi.ru
2
President of the Republic of Uzbekistan Mirziyoev Sh.M. "2021 is the year of youth support and public health
promotion". People's word, December 30, 2020.
3
Decree of the President of the Republic of Uzbekistan "On additional measures to support the population, economic
sectors and business entities during the coronavirus pandemic" T.: April 3, 2020, No. PF-5978. www.lex.uz
Web of Synergy:International Interdisciplinary Research Journal
ISSN:
2835-3013
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2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
terms and conditions of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
512
has a great positive impact on the economy of a particular country and directly serves to increase
the standard of living of the population. Therefore, in developed countries, the share of the sector
in the gross domestic product is 80 percent, 75 percent in total employment, and 90 percent in
total enterprises
4,5
.
In Uzbekistan, legal foundations have been created for radical reform of service industries,
improvement of their activities, increasing their stabilizing role, formation of innovative
economy and use as a factor of ensuring competitiveness. Advanced scientific and technical
achievements were introduced into the service sector, expansion of professional and retraining of
service providers, strengthening of mechanisms for organizing cooperation with large and small
service enterprises based on the development of contractual relations, activation of participation
in corporate relations was improved. However, despite the great progress achieved in the
development of the service sector during the pandemic, the development of the service sector is
lagging slightly in terms of the volume and quality of the services provided. For this reason,
special attention is being paid to modern scientific researches that create a basis for further
development of the service sector, increasing its share in the economy, providing employment
and increasing the income of the population. In 2017-2021, the action strategy for the five
priority directions of the development of the Republic of Uzbekistan defines the important tasks
of "rapid development of the service sector, increasing the role and share of services in the
formation of the gross domestic product"
6
. The effective performance of these tasks determines
the relevance of work on the development of the service sector.
Improving the well-being of the population is at the center 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. For this reason, issues related to social welfare and standard of living
have attracted the attention of many economists since ancient times. For this reason, issues
related to social welfare and standard of living have attracted the attention of many economists
since ancient times
7
. Without their theoretical approaches and theoretical views on social well-
being and its achievement, it is difficult to create a system of modern scientific views on the
well-being of the population and the standard of living.
As a result of our theoretical research in this field, we have identified three important features of
the current stage of human development in solving problems related to raising the standard of
living of the population, i.e.: First, migration in the context of globalization, the service sector,
international trade in the world market, foreign investments, and the development of
communication tools are necessary for the growth of any national economy. has its effects.
Today, Uzbekistan is an integral part of the international community and the global financial and
economic market. This is confirmed by the fact that our relations with the outside world are
expanding more and more, the programs for the development, modernization, technical and
technological re-equipment of economic sectors are being implemented with the support of the
leading developed countries, the integration of Uzbekistan into the international trade system in
the world market, the growing import and export of products, goods and services. the population
of each country has a great influence on the formation of the standard and quality of life.
4
http://bukvi.ru
5
Yulduz P. Urunbaeva Increasing the impact of service sector on the living standards of population in innovative
economy environment http://sersc.org/journals/index.php/IJAST/article/view/10387/5598 2020. 05.
6
Appendix 1 of the Decree of the President of the Republic of Uzbekistan dated February 7, 2017 "On the strategy
of actions for the further development of the Republic of Uzbekistan" No. PF-4947 "Strategy of actions on the five
priority directions of the development of the Republic of Uzbekistan in 2017-2021" Lex.uz
7
Smith A. Research on the nature and causes of the wealth of nations. / translated from English by E.M. Mayburda.-
M., 1993. - P.572 .; Zherebin V.M., Romanov A.N. Standards of living. - M.: UNITI-DANA, 2002.- C 224. ;
Gorelov N.A. et al. The policy of income and the quality of life of the population: Proc. allowance. - St. Petersburg:
Peter, 2003.- C 653.
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ISSN:
2835-3013
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2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
terms and conditions of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
513
Secondly, environmental (epidemic and pandemic) problems are intensifying. As a result of this,
in order to rapidly develop the economy, the need to ensure national and international ecological
safety in solving the problems of resource use, and to adhere to the concept of sustainable
development, which ensures equality of interests of current and future generations, is increasing.
Thirdly, it should be noted that the socially oriented market economy model is taking shape, the
principles of social justice in distribution are becoming stronger, and the rational social policy is
becoming the main factor of economic development. This requires the support of the state's
needy strata of the population and socially vulnerable groups (disabled people, youth, women
(those infected with Covid-19)) and social protection from market forces. On the other hand, the
improvement of the standard of living of the broad strata of the population increases its labor and
social activity, the role and importance of the human factor in production increases, and the
participation in the processes of the country's economy increases.
In order to clarify the theoretical problem, it is important to dwell in more detail on the content
of each direction and the essence of the mechanisms of influence. The main goal of social
production and human economic activity is to satisfy the continuously growing needs of the
population. The need to meet the needs of the population is also fully involved in the service
sector. The needs for various services are an integral part of the general needs of the population,
and satisfying them as fully as possible is the main function of social production.
Therefore, we can say that the position of the service sector in the national economy has
strengthened and it has become a leading factor of expanded reproduction, one of the important
features of the post-industrial society. The service sector is a characteristic of the interdependent
development of various economic, social, political, natural, and cultural processes, which, as a
result, is reflected in the improvement of human living standards. On the other hand, it is
appropriate to recognize the natural desire to raise the standard of living of each person, to live in
comfortable conditions, to fully satisfy one's material and spiritual needs, as an important factor
that drives the development of society and the entire system of economic activity.
Although services as an important means of satisfying human vital needs appeared in very
ancient times, scientific views about 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 justify
their fundamental difference from goods in the form of goods, experts in the field divided all the
goods consumed by humans into two types: tangible goods and intangible goods. It should be
said that the representatives of economic education considered all services as intangible benefits
and laid the foundation for the formation of the scientific concept of services for the first time in
the history of science. For example, the classic economist A. Smith introduced the concepts of
"productive labor" and "unproductive labor" in order to fully reveal the economic content of the
pleasures in the form of service and to solve the problem of considering it as a source of social
wealth of the country
8
. All types of work that create a material product, a material benefit, are
productive work, and this work creates new value. Also, the labor of those employed in
providing services is unproductive, and this labor does not create new value, but serves to absorb
the value created in material production.
In the way of human activity and lifestyle, material blessings 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 opportunities, and the right to be
protected by the court. is very important
9
.
8
Smith A. Research on the nature and causes of the wealth of nations. / translated from English by E.M. Maiburda.-
M., 1993. - P.-152.
9
Urunbaeva Yu.P. Prospects for raising the standard of living of the population based on the development of the
service sector. Dissertation S:, 2018 189 p.
Web of Synergy:International Interdisciplinary Research Journal
ISSN:
2835-3013
©
2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
terms and conditions of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
514
The current theoretical knowledge about the service industry has moved far away from the
original ideas and scientific views about them. The huge economic potential of the service sector
today and its position in the national economy of the country and the theoretical knowledge
about this sector are the result of evolutionary development over several centuries.
For example, F. Kotler expressed this opinion regarding 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
ownership of something
10
. There are also definitions that correspond in content to this idea, and it
is important to touch on them separately. Services are intangible benefits purchased by consumers,
but not in the form of property
11
. A service is a beneficial concept or (action) relationship that does
not have the possibility of acquiring property rights as a material object
12
.
In our opinion, all the definitions and opinions given above do not fully reveal the economic and
social essence of the concept of "service", but they are aimed at justifying an important aspect of
this economic concept, which is that services, like all material goods, satisfy one or another human
need. In our opinion, the main flaw in the given definitions is that if we are based on them in
revealing the essence of the concept of "service", then we have to consider all material, that is,
material goods as services
13
. "Any field, whether it is big or small, shows services in itself," says
T.Levitt. Continuing this idea, F. Kotler gives a new meaning to this approach and states that
"Actually, the customer, who is considered a buyer of goods, buys the service in the form of the
goods offered to him. In the end, it all boils down to service delivery"
14
.
So, based on the above, we can conclude that service is a productive and conscious work that
comes from the skill of the employee. Based on the content of the above ideas, these concepts
can be defined as follows.
Providing services is an activity aimed at meeting the needs of the population, the state and
society to the maximum extent, contributing to the improvement of the population's standard of
living (health, cultural recreation, scientific potential, mood of all classes, saving valuable time
spent on daily household concerns (depending on the need)).
Based on the above points, we can conclude that, recognizing that service delivery is a separate
process, it can be said that in fact they are aimed at improving the standard of living of the
population.
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President of the Republic of Uzbekistan Mirziyoev Sh.M. "2021 is the year of youth support
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Decree of the President of the Republic of Uzbekistan "On additional measures to support the
population, economic sectors and business entities during the coronavirus pandemic" T.:
April 3, 2020, No. PF-5978.
3.
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13
Comment: Wealth comes from health, marriage is beautiful! If there is no health, even the wealth found is
worthless like a child (Yu.P. Urunbaeva).
14
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Peter, 2005.- P. 301.
Web of Synergy:International Interdisciplinary Research Journal
ISSN:
2835-3013
©
2023 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the
terms and conditions of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/).
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in
innovative
economy
environment
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