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"Экономика и социум" №11(90) 2021 www.iupr.ru
THE ESSENCE OF THE SERVICE SECTOR AND THE SOCIO-ECONOMIC
SIGNIFICANCE OF RAPID DEVELOPMENT TODAY
Yu.P.Urunbaeva-Ph.D, docent, Samarkand institute of economics and service,
M.I.Umirzakova-assistant, Samarkand institute of economics and service,
M.I.Baratova-master, Samarkand institute of economics and service.
Annotation -
The article emphasizes the essence of the service sector and the
socio-economic importance of its rapid development.
Key words:
living standards, quality of life, demand, consumption, population
savings, wages, incomes.
Consistent reforms in our country, 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 living and quality of life for the
population of the country, the service sector has a special role.
The rapid development of the service sector in the country and a sharp increase
in its share in GDP allow solving several important socio-economic problems, such
as 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 is growing from year to
year, and during the pandemic period there is a significant decline. In 2015, this
figure was 48.9 per cent, and by 2020 it will be 33.5 per cent. In the Samarkand
region, the share of services in GDP (47.2-30.9%, respectively). 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
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Uzbekistan Sh.M.Mirziyoev raised the issue of increasing the share of tourism
services in GDP to 28% by 2035 is clear proof of our opinion.
Today, innovation processes in service enterprises in the country are
developing slowly, the population's demand for services is not sufficiently met. This,
in turn, harms the formation and development of the service sector, which to some
extent reduces its impact on the living standards of the population.
. President of the Republic of Uzbekistan Mirziyoyev Sh.M. "2021 is the Year of Youth Support
and Public Health." People's Speech, December 30, 2020.
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 following
market relations and thus increasing 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 increase in living standards of the
population based on the development of the service sector, the development of
scientifically based proposals and practical recommendations to improve its
theoretical and methodological basis.
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 forecasts 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. In our
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country, too, the coronavirus pandemic has had a significant impact on the economy,
causing a slowdown in economic growth.
In his address to the Parliament 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. To address the problems, the Decree "On additional measures to support
the population, sectors of the economy and businesses during the coronavirus
Decree of the President of the Republic of Uzbekistan "On additional measures to support the population, sectors of the
economy and businesses during the coronavirus pandemic" T .: April 3, 2020, No PF-5978.
Urunbaeva Increasing the impact of service sector on the living standards of the population in innovative economy
environment http://sersc.org/journals/index.php/IJAST/article/view/10387/5598 2020. 05.
pandemic" provides for strengthening social protection and ensuring the
sustainability of economic sectors, as well as, requires special attention to the support
of some business entities. At the current stage of the 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 favourable conditions
for further development of the service sector. Today, this sector is rapidly developing
the national economy and is highly effective in improving the living standards and
quality of life. It is one of the main components of the social and international
division of labour. 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 the 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
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the economy of a particular country and directly contributes to improving the living
standards of the population. Consequently, in developed countries, the share of the
industry in GDP is 80 per cent, 75 per cent in total employment and 90 per cent in
total enterprises.
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 based on
developing contractual relations, improved participation in corporate relations.
However, despite the great achievements in the development of the service sector in
the context of the pandemic, the development of the services
Appendix 1 to the Decree of the President of the Republic of Uzbekistan dated February 7, 2017 "On the
strategy of actions for further development of the Republic of Uzbekistan" PF-4947 "Strategy of actions on
five priority areas of development of the Republic of Uzbekistan for 2017-2021" Lex. Uz
Smith A. Exploration of the nature and origins of the riches of the people. /per.S.angl.E.M.Mayburda.-M.,
1993. - S.572 .; Jerebin V.M., Romanov A.N. Uroven jizni naseleniya. - M .: UNITI-DANA, 2002.- S 224.;
Gorelov N.A.I dr. Politics of income and quality of life of the population: Ucheb. posobie. - SPb .: Peter,
2003.- S 653.
sector is lagging 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
Uzbekistan for 2017-2021 identifies important tasks for "accelerated development of
the service sector, increasing the role and share of services in. GDP." 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
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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 has 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 the problems of improving living
standards: First - migration in the context of globalization, services, international
trade, foreign investment and communication 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 leading
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 ensure national and international environmental security,
adherence to the concept of sustainable development, ensuring the equality of
interests of present and future generations in solving the problems of resource use to
develop the economy at a rapid pace. Thirdly, it is necessary to take into account the
formation of a socially-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 labour and social activities, the role and importance of the human factor
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in production will increase, participation in the development of the country's
economy will increase. 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
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 favourable conditions, the natural desire to fully meet their
material and spiritual needs is an important factor in the development of society and
the entire system of economic activity.
Although services arose in very ancient times as an important means of
satisfying the vital needs of man, scientific views on them were originally formed in
the works of the representatives of classical economic theory. To reveal the essence
of the concept of services and to justify their radical difference from the goods in the
form 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 laid the foundation for the formation of the scientific concept of services for the
first time in the history of science. For example, the classical economist A.Smith
introduced the concepts of "productive labour" and "unproductive labour" to fully
reveal the economic content of the benefits of the service and to solve the
___________________________________________________________
Smith A. Exploration of the nature and origins of the riches of the people. /per.S.angl.E.M.Mayburda.-M., 1993. - S.-
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152. Urunbaeva Yu.P. Prospects for improving the living standards of the population based on the development of the
service sector. Dissertation S: 2018 189 p. Kotler F. Marketing management. Express course. 2nd ed. / per. s angl .;
under red. S.G. Bojuk.- SPb .: Peter, 2005. - S.301
problem of its view as a source of social wealth of the country. A material product,
all kinds of labour that create material wealth, are productive labour, and this labour
creates new value. Also, the labour of those engaged in service is unproductive, and
this labour does not create new value but serves to assimilate the value created in
material production.
Material benefits 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. 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 expressed the following opinion about 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. Some definitions correspond
to the content of this idea, it is important to dwell on them separately.
Services
are goods that are purchased by consumers but are intangible, alien to the form and
principle of ownership. Service is a profitable concept or (action) attitude that is not
able to acquire the right of ownership of property as any material object.
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
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have to consider all material, that is, packaged blessings as service. "Every industry,
big or small, provides services," Levitt said. Continuing
Assel G. Marketing: principles and strategies: textbook for universities. -M .: INFRA-M, 2001.- S.337. Nureev
R.M. Ekonomika razvitiya: modeli stanovleniya rynochnoy ekonomiki.-M., 2008. - S 19. Note: When it
comes to health, wealth is life, beauty! Wealth gained without health is worthless as a child (Yu.P.Urunbaeva).
Kotler F. Marketing management. Express course. 2-e izd./per. s angl .; under red. S.G. Bojuk. - SPb .: Peter, 2005.- p.
301.
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 ... In the end, everything depends on the service."
Hence, from the above, we can conclude that service is productive and
conscious labour 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)). From the above considerations, we can conclude that while acknowledging
that services are a separate process they can be said to be aimed at improving the
living standards of the population.
List of used literature
1. President of the Republic of Uzbekistan Mirziyoyev Sh.M. "2021 is the Year
of Youth Support and Public Health." People's Speech, December 30, 2020.
2. Decree of the President of the Republic of Uzbekistan "On additional
measures to support the population, sectors of the economy and businesses during the
coronavirus pandemic" T .: April 3, 2020, No PF-5978. www.lex.uz
3. Smith A. Exploration of the nature and origins of the riches of the people.
/per.S.angl.E.M.Mayburda.-M., 1993. - S.-152.
4. Kotler F. Marketing management. Express course. 2nd ed. / per. s angl .;
under red. S.G. Bojuk.- SPb .: Peter, 2005. - S.301.
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"Экономика и социум" №11(90) 2021 www.iupr.ru
5. Assel G. Marketing: principles and strategies: textbook for universities. -M .:
INFRA-M, 2001.- S.337.
6. Nureev R.M. Ekonomika razvitiya: modeli stanovleniya rynochnoy
ekonomiki.-M., 2008. - S 19.
7. Yulduz P. Urunbaeva Increasing the impact of the service sector on the
living standards of the population in an innovative economy environment
http://sersc.org/journals/index.php/IJAST/article/view/10387/5598 2020. 05.
8. Urunbaeva Yu.P. Prospects for improving the living standards of the
population based on the development of the service sector. Dissertation S: 2018 189
p.
9. Muxammedov M. etc. “Theoretical bases of service development and
tourism development” - S .: Zarafshan 2017.-299 p.
10. Urunbaeva Yu. P. The service sector and living standards: interdependence
and development prospects. Monograph.Tashkent .: «FAN», 2013.- 156 p.
