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УДК: 631:636
APPLICATION OF THE FOREIGN CLUSTER METHOD IN
THE TEXTILE INDUSTRY OF UZBEKISTAN
Kholikova Rukhsora Sanjarovna
1
1
PhD researcher, Tashkent State University of Economics
Uzbekistan, 100066, Tashkent, Islom Karimov street, 49
E-mail:
Abstract:
The article examines the relevance of foreign cluster approach in increasing the
competitiveness of entities in textile industry in producing competitive final products for the internal
and foreign markets. There are also considered features of application of a cluster method in
integration formation in industrial complex. Furthermore, the drawbacks of low clustering and
precise solution for them are given.
Keywords:
cluster, competitiveness, foreign experience, textile industry, entities, industrial
structures, clustering, complex, production.
APPLICATION OF THE FOREIGN CLUSTER METHOD IN THE TEXTILE INDUSTRY OF
UZBEKISTAN
Холиқова Рухсора Санжаровна
1
1
Тошкент давлат иқтисодиёт университети таянч докторанти
Ўзбекистон, 100066, Тошкент шаҳар, Ислом Каримов кўчаси, 49
E-mail:
Аннотация:
Ушбу мақолада тўқимачилик саноати иқтисодий ўсишини таъминлашда
хорижий кластер усулини қўллашнинг айрим хусусиятлари кўриб чиқилди ва таққосланди.
Ривожланган
давлатлар
иқтисодчиларининг
кластер
усулини
ривожлантириш
йўналишлари бўйича илмий қарашлари ўрганилди ва таҳлил қилинди. Маҳаллий саноат
корхоналарининг паст даражадаги кластерлашувининг баъзи камчиликлари аниқланди.
Шунингдек, ушбу муаммоларни ҳал қилиш йўллари таклиф этилди.
Калит сўзлар:
кластер, рақобатдошлик, хориж тажрибаси, тўқимачилик саноати,
корхоналар, саноат ва саноат тузилмалари, кўп босқичли жараён, комплекс
Introduction
The economic system of any country represents as the complex of multilevel and
multistage structure consisting of the interconnected objects performing a large number of
functions. Efficiency in functioning of such difficult systems has to be satisfied with many
directions including the correct organizational and administrative decisions. Hence at this
stage of the country's development, the textile industry of Uzbekistan is the most important
diversified and innovatively attractive sector of the economy. As it is widely considered,
textile industry is one of the important components that contribute to the GDP of the
country. The long-term development strategy of Uzbekistan suggests a transition to
industrial-innovative development by 2030 [1].
Moreover, to textile industry as a major mechanized sphere is given a prior role in the
national economy. Therefore, the sustainable innovative development of the sector is a key
priority of any development strategy directed at economic progress and rising living
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conditions. In recent years sector underwent serious reforms and achieved success. Efficient
organization of well-maintained modern technologies, scientifically systematic approach to
technical planning, and strong governmental support for entrepreneurs were the base for
achieving best results. In one way, the works were performed to increase the efficiency of
production of industrial enterprises through their modernization with modern machines and
high technology, in other, to advance the quality and raise the competitiveness of
manufactured textile products.
In his speech at the official meeting of the parliament, the President of Uzbekistan
emphasized that country sees the future of its economy in a cluster method by covering all
processes: from cultivation to the production of finished products. As he mentioned in his
report speech to Oliy Majlis: “Today we decided to create 48 cotton-textile clusters in order
to achieve high indicators in harvesting raw cotton at minimum 52 % with the help of cluster
method next year. Accepting the fact that clusters are considered as new practice for our
economy, it is necessary to revise procedures for governmental support, as well as expanses
funding system, landing and simplifying the credit system” [2]. In this case, appears the
relevance of creation of economic integration inter-branch structures and close
interrelations on production between the enterprises, companies and corporations.
Currently, innovation and research is a key factor in achieving high goals and creating
healthy competition in all areas. The tasks of formation of the structuration mechanisms
and increasing efficiency, realization of integrated organizational and production structures
require the systematic and complex solution. In particular, reforming textile industry on the
basis of the effective application of modern methods and technologies gives significant
results. Indeed, the growth of national competitiveness in textile industry, increasing the
efficiency of national enterprises in the global and local markets is the main purpose of
economic policy of any state. Foreign experience shows that the cluster approach is
recognized globally as a policy of improving the competitiveness of both the national and
regional economies.
Literature review
Production clusters have been developed in many sectors of the economy of almost all
countries, regardless of their level of economic development. In developed countries (EU,
USA) they became a natural stage in the evolution of industrial production methods, and in
developing countries (China, Argentina) clusters are the main way to achieve the world level
of development of various sectors of the economy and access to international markets.
In the United States, which are among the founders of both the theory and practice of
clustering the economy, clusters are consistently developed in many industries, where one
of the most famous is information technology - Silicon Valley. As a country with the
strongest agribusiness, the United States has a large number of agro-industrial clusters, the
largest of which operate in the states of Washington, Oklahoma, Louisiana, as well as a wine
cluster in California.
The main distinctive feature of American clusters that, they mainly focused on export
or import substitution. This cluster development model is aimed at increasing
competitiveness in the global scale based on scientific and technological achievements,
innovations. New high technology, high R&D costs and, as a result, growth, production
efficiency increase allow to produce products that meet requirements of world markets,
which is the main criterion of national and regional competitiveness. Federal R&D support is
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provided in universities, where most scientific and technological research is carried out.
Therefore universities ensure the formation of national human capital in scientific and
technological areas, preparing qualified personnel. The strength of the American model of
competitiveness consists in joint activities of government agencies, industrial enterprises
and academic organizations [3].
At present, the theory of Michael Eugene Porter, Professor of Harvard Business School,
is the most recognized and successful. As a matter of fact, he can be considered as a
founder of cluster theory in its modern understanding [4].
Thus, in his work “On Competition”, the professor distinguishes the following main
definitions of the category of “cluster”:
- geographically concentrated groups of related companies, specialized suppliers,
service providers, and companies in allied spheres, as well as organizations related to their
activity (e.g., universities, standardization agencies, trade unions) in the spheres which
compete, but are involved in the cooperative work;
- a group of geographically close interconnected companies and related organizations
which work in a certain sphere and are characterized by the community of activities and
which supplies one another;
- a system of interconnected companies and organizations, the value of which as a
single whole exceeds the simple sum of its parts;
- a space organization form, which by its internal essence may be more effective as to
the arrangement of production factors if the local competitive suppliers are available [5].
However, there are still unresolved problems in creations of effective models of
formation of organizational structures in inter-branch mechanism considering features of
interaction in management of agrarian industrial complex.
The existing researches, despite the big scientific and practical importance, have the
incomplete character which is expressed in consideration of one or several regulating
mechanisms that confirm need of further researches in the field of state regulation of the
agrarian in modern conditions of inter-branch communications on a full technological chain
of production of a finished product.
Research methodology
During our research we have used a number of methods, including comparative
analysis, logical analysis, analysis and synthesis, induction, deduction methods. The research
methodology of given article is conducted with quantitative data. It can be seen, the article
is written to prove basic fundamental-theoretical aspects of the cotton industry entities and
how to manage them in order to minimize the expenses and receive more profit for the
company. Furthermore, quantitative methods are based on data that can be ‘objectively’
measured with numbers.
Analysis and results
According to facts of the European Cluster Observatory [6], today in 28 countries of
Western and Eastern Europe, there are 2101 clusters in various sectors of the economy with
a total of 42 million employees. At the same time, 11.5% of them operate in the agro-
industrial complex, giving work to 4.5 million people. Most of the clusters are functioning in
the national economy of Germany, followed by Italy, Great Britain, France, Poland and Spain
— that is, the largest, economically and industrially developed states. The same countries,
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as well as Romania, Holland and Portugal, are much more numerous than other countries in
the number of employed workers in these clusters.
As well, in Scotland, the formation of integrated enterprises and the preparation of
sheets are carried out through the creation of networks of local initiative enterprises that
control local infrastructure, including marketing, investment programs, etc. Around a large
enterprise activate to form smaller structures, forming a cluster. The cluster in Scotland is
based on three key programs: skill enhancement, industry ties with universities, and the
competitiveness of small businesses [6].
In the UK, a so-called forecast technology program has been formulated, based on a
constantly growing competition in world market; a mixed sector-cluster approach was laid.
For more than 10 years, Wales, Northern Ireland, and the Northeast of England have
demonstrated successful regional dynamic development in the manufacture of automobiles,
electronics, chemicals, and more traditional sectors such as food and beverage, clothing,
and textiles [6].
In addition, in Russia clustering of industry strengthening gradually, which resulted in
the creation of a large-scale Russian integration project “IARC: industrial-agricultural
regional clusters” under the auspices of the Center for Innovations Non-Profit Partnership.
The main objective of the project is to create a modern innovation-technological structure
of a full cycle of raw material processing, with maximum use of energy-saving, bio-and
nanotechnologies. The project structure unites 4 clusters: agribusiness, petrochemical,
silicon and timber industry, which are closely interrelated and provide each other with raw
materials and products necessary for work. The agro-industrial bio cluster will include a
plant for the deep processing of grain crops and biomass, a feed mill, a pig and poultry
complex, a meat processing plant, as well as a number of enterprises producing enzymes,
acids and amino acids [7].
Moreover, economic integrations become stronger among members of CIS countries,
in particular in Kazakhstan. The textile industry takes the leading place in the structure of
the textile and clothing industry of Kazakhstan. The final products of the textile industry are:
cotton yarn, cotton fabrics, clothing and cotton fiber textiles. South Kazakhstan Region and
Almaty are priority regions for the development of a cluster for the production of fabric and
cotton processing. Currently, there are 9 cotton plants in the Makhtaaral district of the
South Kazakhstan region, which is specialized in growing cotton. The largest enterprises are
LLC Textile Company and the operating haberdashery factory Elastic in Shymkent [8].
An important direction in increasing the economic efficiency of the cotton processing
industry in Kazakhstan is the integration of all links based on the in-depth specialization of
cotton production. For these purposes, it was expedient to form a cotton-textile cluster,
representing a spatial-organizational form of interaction between independent specialized
industries and complementary enterprises and organizations, aimed at creating competitive
high-value cotton products [9].
In recent years, the effort to adopt best practices, agro-industrial cluster methods
began to take root in our homeland, mostly in cotton processing and textile industry.
However, there are still unresolved problems in creations of effective models of
formation of organizational structures in inter-branch mechanism considering features of
interaction in management of textile complex.
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The existing researches, despite the big scientific and practical importance, have the
fragmentary character which is expressed in consideration of one or several regulating
mechanisms that confirm need of further researches in the field of state regulation of the
textile sector in modern conditions of inter economic communications on a full
technological chain of production of a finished product. It is also important to recognize,
that, it is necessary to create and provide new jobs especially in rural places of the republic.
Taking into account regional conditions of the country and some other problems, slow
formation and development of various forms of ownership gives defining character to task
of ensuring sustainable development of the textile sector of economy. All this demonstrates
relevance of this problem and requires its fastest solution.
Formation of cluster integration in the Republic of Uzbekistan is in a stage of formation
and development. The solution that puts today for clusters requires existence of a number
of the factors causing expediency and efficiency of formation these integrated structures.
Being merging of the enterprises and organizations, the cluster has the following most
characteristic features:
- Integration of productions, resources, other competitive advantages;
- Existence of certain interrelations rather than steady interrelations, including on a
technological chain;
- Participants of a cluster from various economic branches, connected by some
common goals, but at the same time keeping independence (autonomy in decision-making
and ownership rights on assets);
- Existence of the large leading organization that defines long-term economic,
investment and other strategy of whole cluster;
- Combination of internal cooperation with internal competition;
- Simultaneous existence of unity and contrast of interests of participants (that exists
from their cooperation and the competition).
Conclusions and recommendations
From point of our view, for the effective solution above purposes, it is necessary to
create new clusters and develop existing ones for the industry of Uzbekistan. Importance of
clusters development in Uzbekistan is connected with existence of own source of raw
materials and also existence direct production and technological communications and
multistage process of production between participants estimated future (research and
design institutions, farms, groups and separate machine-building, tractor farms the
providing technical, transport, and other means of production) subjects of integration
structures in industry.
As world practice shows, clusters rarely arise artificially and from scratch, they appear
and evolve naturally where there are necessary conditions and prerequisites, including in
the form of inter-sectorial production links.
Taking into account world experience, the improvement of the textile cluster in
Uzbekistan should go in the direction of the development of inter territorial cooperation in
the field of the textile and clothing industry. The inclusion of petrochemical complexes and
the chemical industry in this cluster will make it possible to form a single technological chain
for creating a new competitive textile product based on the use of chemical fibers and
threads. In parallel, it is necessary to develop the Fashion Institute, the scientific and
consulting centers of light industry and the Coordination Center of the cluster (according to
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the experience of Turkey). These centers can provide such services as specialized training,
research in the field of technology and materials, clothing market research, export
development, intellectual property management, brand management, personnel
development, quality management, mediation in the organization of joint ventures by small
businesses.
To conclude, the unified concept of implementation of cluster policy at the state level
in the developed countries led to a wide coverage of priority sectors of the economy by the
clustering process, which became a tool for improving competitiveness and innovative
development. The study showed, that the technological structure in the textile industry, as
well as the experience of other countries on sectorial clustering, led to conclusions for
Uzbekistan in terms of forming a single technological chain for the production of new
competitive textile products based on the use of chemical fibers threads and so on.
The offered approach for cluster policy will allow creating innovative development
model of agrarian and industrial complex both down, and across which is based on
consolidation of two activities: optimization of the available resources usage and the state
support of the innovative projects directed to support of development of the cotton
industry of producers.
References
1.
On Approval of Strategy for Innovative Development of the Republic of Uzbekistan
for 2019-2021Decree of the President of the Republic of Uzbekistan
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Speech of President of the Republic of Uzbekistan to Oliy Majlis on December 29,
2018. Official press service of President of the Republic of Uzbekistan. http://www.press-
service.uz.
3.
M. Porter. International competition. M., 2005. 608p.
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E.G. Popkova, I.A. Morozova, T.N. Litvinova and I.M. Kuzlaeva. Role of Clustering in
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http://www.rusnauka.com/12.APSN_2007/Economics/20662.doc.htm
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