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УДК: 415.263.
Urunbayeva Yulduz Pirnazarovna
teacher(PhD)
Samarkand institute of economics and service
THE ROLE OF THE SERVICE INDUSTRY IN THE FORMATION OF POSTINDUSTRIAL SOCIETY
Урунбаева Юлдуз Пирназаровна
Преподавател(PhD)
Самаркандский институт экономики и сервиса
РОЛЬ СЕКТОРА УСЛУГ В РАЗВИТИИ ПОСТИНДУСТРИАЛЬНОГО ОБЩЕСТВА
Аннотация
В статье освещаются прогрессивные реформы в стране, роль сектора услуг в развитии постинду-
стриального общества, развитие постиндустриального общества, обеспечение устойчивого экономиче-
ского роста.
Abstract
The article highlights the progressive reforms in the country, the role of the service sector in the development
of a post-industrial society, the development of a post-industrial society, and the state of development.
Ключевые слова
: постиндустриальное общество, сфера услуг, уровень жизни, качество жизни,
спрос, потребление, сбережения, заработная плата, доходы населения.
Key words
: postindustrial society, service sector, living standards, quality of life, demand, consumption,
savings, wages, income of the population.
In the world practice, the living standards of the
population of the country are determined by the scale
of the service sector, which is characterized by the com-
bination of a number of important factors, such as its
share in key macroeconomic indicators and the volume
of public services per capita. The sphere of services will
have a great positive impact on a particular state econ-
omy and will directly contribute to the growth of the
living standards of the population. Hence, the share of
the industry in GDP of the developed countries is 74
percent
1
, in general employment 70-75 percent and 90-
95 percent of the total number of enterprises
2
.
The legal framework for the radical reform of the
service sector, the effective utilization of this sector in
addressing the transitional challenges, the development
of the sectoral sector and the economic entities, as well
as the development of the sphere of services have been
created in Uzbekistan.At the present time, a number of
theoretical and methodological, economic and legal ba-
ses for the development of tourism in our country are
being explored in the following priority areas: acceler-
ated development of tourism industry and strengthen-
ing its position in the national economy; modernization
of the branch network and introduction of modern tech-
niques and technologies; systematic improvement of
the role of tourism in solving social problems, increas-
ing the share of tourism services in the structure of pop-
ulation consumption, etc. Particular attention is paid to
contemporary scientific research, which will create the
basis for further development of the tourism sector and
increase its share in the economy, increase the living
standards and quality of life based on the employment
and increase in the income of population. The signifi-
cance of the research devoted to this area in Uzbekistan
1
http://bukvi.ru
2
John W.R. Phillips Social Security Programs Throughout the World:Europe, 2016. P. 18 ISSA
is remarkable. The development of the services sector
can contribute to the production of proposals on the use
of innovative methods of management in order to im-
prove the living standards of the population and trans-
form it into one of the key and promising sectors of the
innovative economy.
The authors of the brochure found it necessary to
share their thoughts with the readers on the aforemen-
tioned issues related to increasing the impact of the ser-
vices sector on the standard of living in the context of
the formation of an innovative economy. We hope that
your valuable comments and suggestions on the issues
raised will be a great help in continuing and improving
research on the development of the service industry.
Formation of the concept of social economy de-
pends on the need to improve the welfare of the popu-
lation and prevent the growth of needy and impover-
ished families. Therefore, intensive economic reforms,
which are planned to be held in the Republic in 2018-
2021, will have to become the basis for a flexible policy
towards the income of the population. At every stage of
market reforms, wage increases, differentiated income-
based policies, strong social protection, and transfer
payments to low-income population should be taken
into an account.
In the context of shaping a socially-oriented mar-
ket economy, the role of income is explained by the fact
that every human being's material and spiritual life de-
pends primarily on the level of his incomes. The higher
the level of income of the population, the greater the
possibility of meeting its basic needs, maintaining its
health, getting education, organizing leisure, cultural
leisure. In general, monetary income for a person's
earnings and aspirations is crucial in determining the
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economic situation of the family, which determines his
or her living conditions and affects the way of life.
Therefore, ensuring the reliable protection of private
property rights and guarantees in the Strategy of Ac-
tions, eliminating all obstacles and restrictions on the
development of private enterprise and small business,
giving it full freedom, "If the population is rich, the
state will be richer"
3
. It is also important to take into
account the measures that are being taken to improve
the situation.
Economic literature also emphasizes
4
: income is a
means of livelihood, and it represents the level of living
and many other similar thoughts
5
. Indeed, the income
of the population is a major factor affecting the con-
sumption of the population, including services. Theo-
retical considerations and practical research on this
subject are described in detail in previous chapters. On
the basis of development of entrepreneurship in the
sphere of services, the prospects for the growth of cash
incomes of the population are very wide. It is difficult
to predict and plan the volume of income of the popu-
lation by sector. However, without finding out the
source of revenue and sources of employment, it is dif-
ficult to get full use of opportunities to improve the liv-
ing standards of the people, to find a way to achieve
them, and find ways to deal with potential problems in
practice. Therefore, in the course of our researches, we
have made great efforts to develop the expectations of
the increase in the income of the population on the basis
of the development of entrepreneurship in the sphere of
services, and in this way to justify the role of this factor
in raising the living standards of the population.
In our opinion, it will be necessary to make four
things in the development of the principles of income
generation in the service sector in Samarkand region, in
justifying the ways to increase them in the future.
First of all, in the development of the Concept of
Population Income Policy in the context of creating a
socially-oriented market economy model in Uzbeki-
stan:
- creation of economic conditions promoting ac-
tive labor activity and ensuring high rates of average
per capita income growth;
- precise planning of social protection of the pop-
ulation in need of social support;
- activating the labor market, achieving a balance
between demand and supply of labor;
- creation of economic and legal conditions for ex-
pansion of self-employment of the population;
- organization of home-based work as a pre-pri-
mary tutor for pre-school children who are not working
temporarily;
- avoid excessive leveling of income of different
social groups at the level of living;
3
The scientific article on Uzbekistan’s Five-Area Development Strategy for 2017-2021 in the year of “Dialogue with people
and people’s interests. – Tashkent: Manaviyat; 2017. p. 141
4
Annaev M.B. “Estimation of the profit of industrial companies and problems with audit.Monography”, T., Navruz, 2011- p.6
5
Muhammedov M.M. Economic theory.Textbook.Samarkand, Zarafshan, 2017. – p.308
6
The scientific article on Uzbekistan’s Five-Area Development Strategy for 2017-2021 in the year of “Dialogue with people
and people’s interests”. – Tashkent: Manaviyat; 2017. p. 170
7
Statistical info of 2016 by Statistics Committee of the Republic of Uzbekistan.
- Achieving sustainable growth of the real and vol-
untary income of the population, and so on.
The third reason for forecasting income in the ser-
vice sector of the Samarkand region is the fact that the
President of Uzbekistan Sh.M.Mirziyoev intensively
increased the incomes of the entire population in the fu-
ture and increased the real incomes of the population by
more than 12 times in the future, wages, pensions and
social benefits increased significantly
6
.
Finally, the fourth thing to do with Samarkand Re-
gion's revenue growth is to develop the service industry
as a priority area in the country and to increase its role
in the socio-economic development of Uzbekistan.
At every stage of society's development, the status
and development prospects of a particular industry or a
particular industry, its position and place in the national
economy are determined by the specific features of a
particular period. Service sector becomes a leading fac-
tor in socio-economic development. Based on the find-
ings of the research, the main factors contributing to the
steady increase in the monetary income of the popula-
tion on the basis of the development of entrepreneur-
ship in the sphere of services.
First of all, the government itself has a great inter-
est in the development of entrepreneurship in the ser-
vice sector. In other words, as a result of the develop-
ment of entrepreneurship, the state budget is financed.
In 2016, the share of small businesses in the country's
GDP amounted to 56.7% (Samarkand region's share in
the gross regional product - 72.2%), while the service
sector average 70%. Growth of gross domestic product
per capita was observed. Growth of gross domestic
product per capita will lead to an increase in the real
incomes of the population.
Secondly, the unemployment rate is decreasing
due to the creation of new jobs. With the growth of la-
bor productivity in the manufacturing sector, labor re-
sources released will be used to develop the services
sector. In Samarkand region, 48.1% (714.3 thousand)
of the employed population were employed in material
production, while 51.9% (770.8 thousand) were in ser-
vice sector. This, in turn, will generate income by in-
creasing the employment rate in the services sector.
Thirdly, the increase in the population's income leads
to a faster rise in demand for services. The final out-
comes of economic growth are reflected in the growth
of the real income of the population and the well-being
of the population. During the years of independence the
real incomes of the population have grown more than
twelve times. Over the same period, the demand for the
services has increased by 25.7 times
7
.
As a result of the research, we have identified
problems that hinder the growth of employment in the
service sector and should be addressed through direct
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intervention of the state and we have developed pro-
posals for their solution:
- The results of the research have shown that the
average wage in the service sector is considerably
lower than in the material industries - 37.3%
8
. In devel-
oped countries, average wage in the service sector is
60-70% of total income. The benefits of entrepreneurial
activity make up 15-18 percent of the total income of
the developed economies (for example, the United
States). In our country, this figure is 52.7% and the real
estate - 3.2%.
As a result, the problem of attraction of qualified
personnel in the industry, and the effective promotion
of their labor remains to this day. To solve the problem,
it is important to recognize the discrepancies between
the service sector and the production of material goods
and to gradually eliminate these differences on the basis
of a policy of faster growth in service delivery (espe-
cially health, education, culture) to give;
- Important role in the provision of effective use of
workers' labor during the service process. Business
leaders in developed countries consider trade as the key
to success, efficient use of employee service, and
strictly adhere to this principle in their operations. They
work on three major stimulus models - American, Jap-
anese and European
9
. Thus, to improve the financial in-
centive funds in service enterprises and organizations
and to increase the quality and effectiveness of the
workforce through the use of paid premiums. As a
source of material incentives, we believe that financial
support from business entities, donations and gifts,
business savings (business) savings, and the proceeds
from entrepreneurial income, as well as officially re-
ceived service facilities;
- service in rural areas is much lower than the prof-
itability and profitability of business entities (legal en-
tities) and individual entrepreneurs (individuals) in ur-
ban areas, who engage in such activities. In other
words, the seasonality of agriculture, natural climatic
and economic conditions, the existence of a risk of non-
profit agriculture, the use of major agricultural products
as a raw material for domestic businesses, rural ser-
vices, workers are women, older, often retired. Senior
adults and women reject some forms of entrepreneurial
risk (risk) and thus hinder their work productivity. As a
result, entrepreneurship in rural areas does not develop
well and the consequences of this situation have a ma-
jor negative impact on the living standards and quality
of the rural population. In order to solve the problem,
there is a need to strengthen taxation and credit support
privileges and support policies for businesses operating
in rural areas, and, if necessary, exempt from taxes;
- Non-formation of labor incentives and effective
distribution of business income in the service sector.
That is, in the service sector, there are natural resources,
that is to say, the working subjects. At the same time,
employees are primarily serviced by human beings,
their needs and desires. During the activity of the ser-
8
Identified figures with the assistance from the staff of the municipality of Samarkand region.
9
Bazarova T.Y.,Eremina B.L. Human Resources: A Textbook for Universities. 2
nd
Edition. – M.Unity, 2007. – p. 67
10
The same source.
vice, they face sensitive features, such as conscious-
ness, psychology, social relations. It affects the nature
of the labor. This kind of work has a creative character
and requires a high level of staffing and intellectual
abilities. The creative process of service in the service
sector creates difficulties in its normalization and iden-
tification of its results.
In the world practice, effective methods of distri-
bution of enterprise income and financial incentives for
high performance indicators have been developed
10
. At
present, income-generating companies are used as an
important tool for achieving the level of quality and
quantity of the company's employees by linking them
with the results of labor, and in practice they are bring-
ing great social benefits. In our country, the issues of
stimulating the productivity of industries in the sectors
of material production, in particular, in the field of sci-
ence and industry, pay considerable attention. How-
ever, the creation and implementation of effective sys-
tems for distribution and improvement of earnings in
the service sector and the incentives for labor have been
negligible. Based on the specificity of the service sec-
tor, and the specific goals and objectives facing each
particular entity, the system of revenue distribution, la-
bor incentives, and rewarding systems should be devel-
oped. In our opinion, service sector, which serves as a
paid service, will have a good positive effect on the par-
ticipation of employees in the distribution of benefits
by the employees in accordance with the interests and
objectives of labor activity. In addition, it is necessary
to introduce a system of participatory work to enhance
the employees' interest in achieving high performance
results.
According to the results of the analysis, the devel-
opment of the service sector necessitated the develop-
ment of the income of the population. The results of the
research have shown that the factors influencing the av-
erage salary in the service sector are: the effectiveness
of the provision of paid services to the population, the
share of services in the gross regional product, and the
change in the value of payments for goods and services.
Therefore, the most important task of these factors is to
calculate the share of these factors in the growth of
monetary income of the population.
It is well known that currently at the current stage
of economic reforms, the wide opportunities for the de-
velopment of the sphere of services are being solved.
These opportunities, in turn, require that this sector be-
come an increasingly important part of the economy.
We tried to justify theoretical and methodological basis
for the ability of the sphere of services to transform the
population into one of the conceptual directions of the
most important socio-economic problem, such as in-
creasing the cash income.
Based on the above, and based on the results of the
research, we have proposed a model of total revenue
generation in the service sector. The part of these in-
comes is different incomes for the share of employed
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workers: salaries, entrepreneurship incomes and others
(Picture 1).
The model we offer, along with the earnings of
employees in the service sector, is also reflected in the
income of the enterprise and other businesses. This
model is based on both formal and informal sources of
income. An important aspect of this approach is that
although the income of the enterprise is not directly in-
volved in the standard of living of the population, they
ultimately have a great positive impact on the living
standards of the population.
Picture 1. Gross Income Generation Model *
Gross income in the service sector
Formalincomes
Revenuesof the company
The real profit of the company
Interestsreceivedfromdeposits
Revenuesreceived from rents
The profits made by selling the
private properties
Incomes of the staff
Wages of workers and attend-
ants
Incomes received from busi-
nesses
Incomes made by offering the
rental services
Pensionsand financial aids
Otherincomes
The informal incomes which is not on thelist
Incomes of economic enti-
ties received from informal
operations
Incomes of staff from
informal employment
Illegal incomes of
workers
Otherincomes
Incomes made by not dis-
closing informal para-
graphs, the volume of the
produced materials,and
the circulation(realization)
volume
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That is, the increase in the tax on the basis of the
identification of non-registered enterprise income, and,
consequently, the opportunity for low-income families
to expand social protection services at the expense of
budgetary funds.
The fact that the model reflects the official and in-
formal earnings of employees in the model makes it
easier to find ways to reduce the share of informal in-
comes that are not included in the gross income struc-
ture. As a result, it will create conditions for reducing
the share of informal revenues, which will have a major
negative impact on the overall income of workers.
In general, we aimed to explore a number of theo-
retically inaccurate aspects of this issue, taking into ac-
count the peculiarity of the role of the services in im-
proving the living standards of the population. The re-
search carried out in the context of the problems,
criteria, indicators of these processes is not only theo-
retical but also practical. The total amount of revenue
in the sphere of services should be assessed on the basis
of the above model on separate economic entities, the
industry, the whole industry, and in some districts, cit-
ies and regions. Only then will there be an objective as-
sessment of the potential for predicting and increasing
the volume of revenue generated in the service sector.
But we believe that the main obstacle to achieving this
goal is the unofficial income. This problem may be the
subject of independent research.
Most of the income of the population in the service
sector is formed as a salary. The policy pursued in our
country is aimed at continuously raising wages and in-
creasing the share of the population in total income.
Therefore, we think that the focus should be on increas-
ing the salaries of each service provider. In our opinion,
two major indicators should be taken into account in the
planning of earnings of employees in the wage-earning
businesses' enterprises.
The first one is the monthly wages of workers in a
particular profession or in a service enterprise operating
at the expense of the state budget and state budget. This
should be avoided by the fact that the size of the
monthly wage is lower than that of the state-owned en-
terprise.
The second is the share of the wage fund allocated
to the employees of the enterprise in the gross income
of the enterprise. The results of our research on com-
mercial merchandise show that the share of wages paid
to employees in the current period is about 40 percent
in the total gross profit of the company. The higher the
share of employees in the value added, the higher the
material interest in improving their performance and
the results of the enterprise. Therefore, it is desirable to
raise this figure up to 50-55%.
In the area of service provision of the population
in the sphere of services, along with the results of the
analysis for the reporting period, the state policy aimed
at the priority development of business plans of busi-
ness entities, service sector and small and private entre-
preneurship can be substantiated.
Thus, based on the aforementioned methods and
approaches, it is possible to generate income in the ser-
vice sector and accelerate their growth in the future, to
increase these incomes to new levels of living standards
of population, and, if necessary, to make macroeco-
nomic impacts and modifications to those processes.
