Authors

  • Mavjuda Sagdullaeva
    Tashkent State Transport University, Department Of Higher Mathematics, Uzbekistan
  • Djurayeva Saida
    Tashkent University Of Applied Sciences, Uzbekistan

DOI:

https://doi.org/10.37547/ijmef/Volume03Issue01-04

Keywords:

Digital economics digital technologies economic growth

Abstract

The article discusses the growing role of ICT and the digital system in economics of Uzbekistan and also illustrate the related statistics , legislations, and measures which are being used recently by our government in order to make progress in our economic system.


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Volume 03 Issue 01-2023

26


International Journal Of Management And Economics Fundamental
(ISSN

2771-2257)

VOLUME

03

I

SSUE

01

Pages:

26

-31

SJIF

I

MPACT

FACTOR

(2021:

5.

705

)

(2022:

5.

705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

ABSTRACT

The article discusses the growing role of ICT and the digital system in economics of Uzbekistan and also illustrate the
related statistics , legislations, and measures which are being used recently by our government in order to make
progress in our economic system

KEYWORDS

Digital economics, digital technologies ,economic growth, living standards, natural monopoly, E-government
program, telecommunication infrastructure, e-investment, competitive advantages.

INTRODUCTION

Everydiv knows that, the countries’ economic

system is one of the basic and the undeniable
fact that plays essential roles in order to extend and

develop countries’ economical reputation. Thus, every

government firstly try to improve the living
standards of local residents. As in our modernlife,
ICT (Information

and Communication Technologies) are becoming one
of the crucial part of our life and every field of our
living, the necessity of ICT is growing rapidly day by day
our government is preferring to develop digital
system in the country.

Research Article

THE ROLE OF ICT ON THE ECONOMY OF UZBEKISTAN

Submission Date:

January 15, 2023,

Accepted Date:

January 20, 2023,

Published Date:

January 25, 2023

Crossref doi:

https://doi.org/10.37547/ijmef/Volume03Issue01-04


Mavjuda Sagdullaeva

Tashkent State Transport University, Department Of Higher Mathematics, Uzbekistan

Djurayeva Saida

Tashkent University Of Applied Sciences, Uzbekistan

Journal

Website:

https://theusajournals.
com/index.php/ijmef

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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Volume 03 Issue 01-2023

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International Journal Of Management And Economics Fundamental
(ISSN

2771-2257)

VOLUME

03

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Pages:

26

-31

SJIF

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MPACT

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(2021:

5.

705

)

(2022:

5.

705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

Today, Uzbekistan is one of the fastest growing

economies in Central Asia. The country’s active

efforts on improving the quality and increasing the
quantity of Information and Communication services
delivered on a state level, have laid the basics for
developing the digital economy in the country. Before

making notes about Uzbekistan’s digital economic

system I intend to pay attention the digital economy
itself what is digital economy? And what factors are
needed to build digital system? The digital economy
is an umbrella term used to describe markets that
focus on digital technologies. These typically involve
the trade of information goods or services through
electronic commerce. It operates on a layered basis,
with separate segments for data transportation
and applications. Conventionally, data transportation
was considered to be a natural monopoly, while
applications were assumed to be a very competitive
segment.
Increasingly, however, this dichotomy has been
reversing as the transportation segment is liberalized
and many applications markets become more
concentrated. The Committee's hearings focused
on competition issues relating to software platforms

and applications. Furthermore the Decree “On the

Action Strategy for the Continuous Development
of the Republic of Uzbekistan in 2017-

2021”, was

signed by the President of the Republic of
Uzbekistan in order to establish decent conditions
for continuous economic improvement in the
country, distinguish foremost priorities and concise
directions of further deepening democratic reforms in
the country(2017 - the year of sweeping reforms,
2018),
Even, in the address by the President of the republic
of Uzbekistan to Oliy Majlis there many many
important facts were discussed such as, We must
design National Concept of Digital Economy which
considers upgrade of all sectors of our economy

with digital technologies. In this context, we need to

introduce the Program “Uzbekistan Digital

-

2030”.

Digital economy will facilitate at least 30 -percent
increase of GDP and significant reduction of

corruption. It’s being also proved by the analysis of

reputed international organizations. Accordingly,
within two months time, the Government is to

develop “roadmap” on transition to digital economy.

In this regard, special attention needs to be paid at
ensuring information security. The Ministry for
Development of Information Technologies and
Communications administers these projects (since
2015). Inside the E-Government program, Uzbekistan
has propelled 265 online administrations and 600
government organizations, actualized client criticism
on administration quality and e-investment, expanded
straightforwardness

in

open

administration

conveyance, set-up a call-focus, and set up "One-
Stop-Shops" in 194 regions of the nation. Uzbekistan
has affirmed its availability to work together with the
World Bank and with different nations in the area
to build up a focused ICT segment and triple its weight
in the national economy. If we look through the
digital system and the ICT in statistics globally
the digital transformation of organizational and
economic principles of management is becoming as
one of the key factors of global economic growth.
According to the Boston Consulting Group (BCG),
the share of digital economy in the GDP of
developed countries have raised by 1.2 percent
since 2010, reaching 5.5 percent. Whereas, the share
of the digital economy in the GDP of developing
countries has increased from 3.6 percent to 4.9
percent in 2016(Walden, 2015).
Furthermore, based on the data of the World
Economic Forum, the competitiveness index of the
economy has a high level of correlation with the


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Volume 03 Issue 01-2023

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International Journal Of Management And Economics Fundamental
(ISSN

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VOLUME

03

I

SSUE

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Pages:

26

-31

SJIF

I

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(2021:

5.

705

)

(2022:

5.

705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

index of ICT development. Subsequently, ICT market is
added to the list of 25 percent of fastest growing
major sectors of the world economy. In addition,
economic sectors that continuously involving ICT in
their activities are growing 1.7 times faster than the
average growth rate in the economy (OECD
Information Technology Outlook 2015). The role of

ICT in building the “digital

economy” the benefits and opportunities enabled

through the rapid growth of ICT and its applications
have been widely researched and discussed. To
generalize, the influence of ICT development can be
viewed in two major directions : The computerization
of most man made tasks that allow service
providers to remodel and significantly upgrade
the traditional service delivery
procedures. In fact, the widespread application of ICT
led to the

•creation of high

-paying jobs;

•growth of productivity and GDP;

•rise of high growth

companies;

•creation of new sectors and ways of doing

business;

•increase of competitive advantage;

•and promotion of Innovation

Also, New digital trends such as cloud computing,
mobile web services, smart grids, and social media,
are radically changing the business landscape,
reshaping the nature of work, the boundaries
of enterprises and the responsibilities of business
leaders. These trends enable more than just
technological innovation. They spur innovation in
business models, business networking and the transfer
of knowledge and access to international markets.
According to the press service of the Ministry of
Information Technologies and Communications, the
draft resolution of the Cabinet of Ministers sets the
following directions for the development of digital
economy in the Republic of Uzbekistan:

•identification of state and economic bodies, local

self -government bodies on the basis of
necessary information systems and resources,
implementation of software and electronic services;

•creation of favorable conditions for attracting

foreign investments in the country by organizing
the technology market and technology parks on
the basis of the digital economy, information
technologies

market,

including

public-private

partnerships

•coordination of modern telecommunication

infrastructure,

development

of

communication

technologies and networks, introduction of modern
telecommunication services

•development of proposals for the development of

the national segment of the Internet, organizational,
material and technical and economic support for
digital media content. The features of a digital
economy make it an inherently useful and system.
Digitization has provided the solution for storage
requirements of articles like books, music, film and
newspaper. Libraries filled with archives of
newspapers, books and music cassettes would occupy
vast amounts of space and labor for maintenance and
recovery. However, digital libraries have been a
godsend in such situations. With prints of old film
and newspapers being digitized, they can be stored in
compact forms. In addition to the savings in terms of
storage space, there is also the advantage of having
ease in recovery of such items as they can be looked
up on a central database and obtained within seconds.

Also, resources which would otherwise have been
used in maintaining these records can now be
employed elsewhere. This discussion leads us to the
very first and most obvious advantage of a digital
economy

minimal space requirements. The vast

infrastructure that goes into setting up a digital


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Volume 03 Issue 01-2023

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International Journal Of Management And Economics Fundamental
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VOLUME

03

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Pages:

26

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SJIF

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(2021:

5.

705

)

(2022:

5.

705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

economy (like the internet) is actually very small in
physical terms.
Building the digital economy can lead to another
following undeniable advantages:

Preventing the hidden economy

Time saving


From the first days of independence Uzbekistan has
paid great attention to the comprehensive
development of information and communication
technologies and their wide application in all spheres
of life of state and society. Over a short period the
authorities created the legal framework conducive to
further formation and progress of market of IT-
technologies. In particular, in 1992 the Law "On
telecommunications" was adopted, which established
general principles of progressive promotion of the
industry. Issues of ICT legal regulation received further
development in the Law "On information" dated
December 11, 2003. President's Resolutions "On
measures

for

further

implementation

and

development

of

modern

information

and

communication technologies" dated March 21, 2012
and "On further development of computerization and
introduction of information and communication
technologies" dated May 30, 2002, became important
documents in this direction. At present the Complex
program of development of National information and
communication system of the Republic of Uzbekistan
for 2013-2020 is being implemented. This program was
approved by President's Resolution dated June 27,
2013.

Making a statement at enlarged meeting of the
Cabinet of Ministers dedicated to the socio-economic
development in 2015 and the most important priorities
of economic program for 2016, President Islam
Karimov noted that in today's conditions in the era of

Internet and electronics, the widespread introduction
of information and communication technologies in the
fields of economy, radical acceleration of creation of
system "Electronic government" are of priority
significance. As the head of our state underlined,
development of ICT has a direct impact on the level of
competitiveness of the country, allows you to collect
and summarize vast amounts of information, offers
great opportunities for management at strategic level.
The task of regular improving of the governance,
strengthening the capacity of IT-industry was
entrusted to the Ministry for development of
information

technologies

and communications,

created by the Resolution of the Head of our state
dated February 4, 2015. In addition, since 2002 a Centre
for development and introduction of computer and
information technologies UZINFOCOM operates,
which assists in the development and implementation
of national programs of computerization and
introduction of ICT in all sectors of public
administration, economic and social spheres.Over the
past years, the country carried out systematic work on
development of Internet, mobile communications and
other areas, on formation of high-tech base of
modernization of national economy.

The basis for development of ICT in Uzbekistan is the
telecommunications infrastructure.

The

current

stage

of

development

of

telecommunications technologies, networks and
communication infrastructure of the country is
characterized by expansion of fixed and mobile
broadband access, increase of switching centers for
data transfer and voice traffic, modernization of trunk
lines, as well as creation of infrastructure for
development of multimedia services.


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VOLUME

03

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Pages:

26

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SJIF

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(2021:

5.

705

)

(2022:

5.

705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

Over the past 20 years in many regions of the country
more than 2,000 kilometers of fiber-optic cables have
been laid. They are designed for broadband access to
modern technology and provision of converged
services such as video telephony, high-speed Internet,
watching HDTV-channels and others. Due to the
measures taken in 2015, the overall rate of use of
international information networks increased by 42.3%
compared to 2014 and amounted to 15.5 Gb/s.
Today, all mobile operators operating in our country,
consistently introduce the fourth generation network
4G LTE, which allows to handle a large volume of
information on Internet quickly and efficiently,
download and view video streaming and high-quality
photos, use online applications in education purposes
and for business. All of these technologies enable
Internet users in Uzbekistan to expand their usual
ability to work with ICT.

In 2014-2015 Program of development of broadband
access networks on Wi-Fi technology has been
implemented successfully in the Republic of
Uzbekistan. As a result of comprehensive measures at
airports, railway stations, places of frequent-stay
travelers, parks, shopping malls and other public places
of the capital and each administrative center of
republic Wi-Fi points have been created.

The high development rates of national Internet
segment should be separately noted. Uzbekistan has
10.2 million web users. According to UZINFOCOM
center, in January 2016 the number of websites in the
UZ zone exceeded 25 thousand, while growth totaled
more than 30% compared to same period of last year.
The use of ICT and software products in the
management and production processes plays a major
role in the development of sectors of the economy and
the domestic industry. For instance, in 2014-2015 in the
framework of a special state program 86 projects have

been realized in order to introduce information
systems in large joint-stock companies, associations
and organizations totaling more than 330 billion
soums. Particular attention is paid to development of
national market of software products.

In order to stimulate domestic programmers the
National register of software developers has been
created, which already included 69 companies. A
directory of software manufacturers Software.uz has
been developed that provides necessary information
to citizens and businesses.

According to the Resolution of the President of the
Republic of Uzbekistan "On measures to further
strengthen the incentives of domestic software
developers" dated September 20, 2013 new benefits
and preferences for members of software industry
were introduced. Thus, they are exempt from customs
duties for imported equipment for their own use,
components, parts, technical documentation and
software until January 1, 2017. It is known that
interactive public services are of particular importance
in protection of human rights and freedoms, saving
time and expenditures for obtaining necessary
information and services. A consistent work on
formation of "Electronic government" is carried out in
the country. The activity of the Governmental portal of
the Republic of Uzbekistan (gov.uz) and the The single
portal of interactive state services (SPISS), located on
the Internet at my.gov.uz, has been established.
Functional of SPISS expands dynamically, 235 kinds of
interactive services are being rendered through it.
Over the past five years this system received in total
more than 200 thousand electronic applications of
citizens and businessmen. Making an online
appointment with the heads of government agencies,
receipt of information on their activities, various
inquiries and sending requests became popular. In


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VOLUME

03

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Pages:

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-31

SJIF

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(2021:

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705

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(2022:

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705

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

January 2015, the portal has launched a new system for
discussion of draft legal acts related to business
activities, and evaluation of existing documents. To
date, 80 draft laws have been discussed through this
system, 9 of them have been improved taking into
account the opinions of citizens. At this time, the
discussion of more than 20 legal acts continues.
Information system E-Sud for electronic proceedings is
functioning effectively since 2004. Through its
implementation, procedures such

as keeping

registration books, document management within
court, direction of judicial notifications and procedural
acts, familiarization of sides with case are completely
automated now. All educational institutions of the
republic are connected to ZiyoNET network, which is
functioning since 2005. In the library of portal, which
was updated in 2014, has more than 75 thousand units
of

informative-educational

resources,

including

textbooks, dissertations, research papers and others.
As part of implementation of resolution of Head of our
state "On measures on further improvement of foreign
language learning system" dated December 10, 2012,
"Foreign Languages" section has been created on
ZiyoNET, which includes over four thousand materials
such as textbooks, interactive lessons, games, relevant
video and audio. The country regularly hosts major
events dedicated to the development of hi-tech
industry. In particular, Week of information and
communication technologies ICT Week Uzbekistan is
being held since 2004. Traditionally it is opened with
national exhibition of information technologies ICT
Expo, which takes place once in two cities - Tashkent
and Samarkand. The exhibition presents existing and
future forms of ICT-based services, oriented to
business community and authorities, and general
population. Among the important events of the week -
The Forum for Information and Communication
Technologies ICT Forum, wh ere representatives of
leading companies, industry experts and foreign

experts discuss state and prospects of progress in this
sphere.

REFERENCES

1.

President of Uzbekistan Shavkat Mirziyoyev’s
decree about “Five priority areas of
Uzbekistan’s Development strategy for 2017

-2021

2.

Address by the President of the republic of
Uzbekistan to Oliy Majlis 2018-year 28-December

3.

The national legislation database of the Republic
of Uzbekistan: www.lex.uz

4.

International Journal of Economics, Commerce
and Management Vol. VI,

Issue 5, May 20185.Ministry for the Development of
Information Technologies and Communications of
the Republic of Uzbekistan.www.mitc.uz.

5.

www.stat.uz.

References

President of Uzbekistan Shavkat Mirziyoyev’s decree about “Five priority areas of Uzbekistan’s Development strategy for 2017-2021

Address by the President of the republic of Uzbekistan to Oliy Majlis 2018-year 28-December

The national legislation database of the Republic of Uzbekistan: www.lex.uz

International Journal of Economics, Commerce and Management Vol. VI,

Issue 5, May 20185.Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan.www.mitc.uz.

www.stat.uz.