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Urunbaeva Yu.P., Ph.D
docent
Samarkand institute of economics and service
Umirzakova M.I.
assistant
Samarkand institute of economics and service
Baratova M.I., master
Samarkand institute of economics and service
THE ESSENCE OF THE SERVICE SECTOR AND THE SOCIO-
ECONOMIC SIGNIFICANCE OF RAPID DEVELOPMENT TODAY
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 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.
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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
33
.
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 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
34
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
33
http://bukvi. 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.
34
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 http://bukvi.ru Yulduz P. 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.
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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 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
35
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
35
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.
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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 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 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
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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
36
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
36
Smith A. Exploration of the nature and origins of the riches of the people. /per.S.angl.E.M.Mayburda.-M.,
1993. - S.-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
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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 have to consider all material, that is, packaged
blessings as service. "Every industry, big or small, provides services," Levitt
said. Continuing
37
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.
References:
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.
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.
37
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.
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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.
