Volume 04 Issue 11-2024
103
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
11
P
AGES
:
103-110
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
Digitization of agriculture is one of the urgent tasks on the agenda, which will serve to ensure high economic growth
in agriculture in the future. In general, the digital economy is the use of the results of analysis of processes and the
processing of large volumes of data, which allows to significantly increase the efficiency of storage, sale and delivery
of various productions, technologies, equipment, goods and services, information in digital form is the main A factor
of production is a calculated activity.
KEYWORDS
Digitization, digital economy, information, innovative technology, innovation, communication, software, internet,
owner, service, infrastructure.
INTRODUCTION
In the Address by the President of the Republic of
Uzbekistan, Sh. Mirziyoyev, dedicated to the
completion of the main works carried out in 2022 and
the most priority directions of socio-economic
development of the Republic of Uzbekistan in 2023, "...
creation of conditions for the rapid development of the
Research Article
THE EFFECT OF THE DIGITAL ECONOMY ON ECONOMIC GROWTH IN
OUR REPUBLIC (IN AGRICULTURE)
Submission Date:
November 09, 2024,
Accepted Date:
November 14, 2024,
Published Date:
November 19, 2024
Crossref doi:
https://doi.org/10.37547/ijmef/Volume04Issue11-10
Karieva Gulnora Abdullayevna
Dosent, Tashkent State Agrarian University, TSAU, Uzbekistan
Normurodov Sarvar Norboy o‘g‘li
Assistant, Tashkent State Agrarian University, TSAU, 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.
Volume 04 Issue 11-2024
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
04
ISSUE
11
P
AGES
:
103-110
OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
digital economy, further improvement of the state
administration system, expansion of its use
possibilities, use of modern infrastructure are of great
importance"1. The Farb business was one of the first to
actively adopt new means of communication, digitized
everything possible, obtained the legalization of
electronic digital signatures from the government,
established digital communication not only within the
business community, but also in the state, government
agencies have gradually integrated their information
systems.
Agriculture and food production are going digital,
ubiquitous, mobile and mobile. For example, the
spread of mobile technologies, remote sensing, and
distributed computing in the agriculture and food
industries will improve smallholders' access to
information, inputs, and markets, thereby increasing
production and productivity, optimizing supply chains,
and reducing transaction costs.
There are a number of conditions that determine the
format of digital transformation in agriculture,
including:
- a minimum set of basic conditions enabling the use
of technologies: connectivity to support digital
strategies, financial literacy, computer literacy, skills in
the field of ICT, as well as political measures and
programs (e-government);
˗
factors that enable the assimilation of technologies:
the use of the Internet, mobile phones and social
networks, skills in the use of digital technologies,
supporting
the
culture
of
innovation
and
entrepreneurship in the agro-food sector (talent
development, hackathons - acceleration of learning
programs, business incubators, accelerator programs,
etc.).
There are a number of basic conditions necessary for
the implementation of digital transformations in the
food sector, as well as the use of digital technologies.
These are the availability of infrastructure and
connectivity (mobile subscriber, network coverage,
internet access and energy supply), financial capability,
level of education (literacy, ICT education) and
institutional support.
Access to digital technologies provides small farms and
other rural enterprises with access to suppliers, access
to information, recruitment of talented workers,
formation of strategic cooperation mechanisms,
access to markets and consumers, legal, financial and
educational services. l can provide a significant
advantage in disclosure. In this regard, the
introduction of digitalization of rural areas may be
accompanied by some problems. All over the world,
the share of the rural population is decreasing, and
their opportunities for employment and education are
limited. Lack of infrastructure, as well as basic
information technology infrastructure typical for
communities with a large share of indigenous people
and remote rural communities. The costs associated
with the creation of information technology
infrastructure pose a major barrier in rural areas, as
Volume 04 Issue 11-2024
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International Journal Of Management And Economics Fundamental
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VOLUME
04
ISSUE
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
there are many financial challenges in areas that are
typically very poor and mostly developing.
In the age of digitalization, ICT, including mobile
phones and computers, have revolutionized the
methods of access to knowledge and information, and
fundamental changes have been achieved in the use of
business activities and services. However, there are
significant digital divides within and among countries'
domestic economies.
In recent years, the number of smartphone owners and
users of broadband mobile technologies in developing
countries has grown much faster than in developed
countries, but the number of subscribers using
broadband Internet in developed countries is twice as
much as in developing countries. Using digital
technologies requires a basic level of literacy,
numeracy, and some technical knowledge and skills. In
societies where digitization is becoming the strongest
driving force, people without these skills are at risk of
being left out.
In human society, the agrarian sector is a source of
resources for people's livelihood and industrial sectors.
Digitization of the industry will significantly change the
nature of work and the demand for specialists and their
skills. The demand for computer literacy of specialists
in the agro-food sector is increasing, which requires
organizations to take a creative approach to organizing
such training and retraining.
There are several important factors that contribute to
the digitization of agriculture. The three main factors
are the use of agricultural social networks, mobile
networks and Internet knowledge sharing services by
farmers and workers; availability of skills to use digital
technologies
among
villagers;
an
economic
environment that encourages rural entrepreneurs to
implement innovation and digital technologies.
The easiest path to digital transformation is in high-
tech industries related to software development and
distribution. In addition, the financial sector and the
service sector are rapidly modernizing. Among the
industrial enterprises, significant progress is being
observed in the production of chemical industry and
mechanical engineering. Almost all industries are
inevitably involved in the global digitization process
[2].
The modern economy is post-industrial, and it is often
called the economy of new, innovative, knowledge,
competence, network interaction. It should be noted
that this series of definitions, on the one hand, have
different meanings, but on the other hand, they
describe the same period of economic activity. The
combination of two sectors - agro-industrial complex
(AIK) and software development (software) opens up
great opportunities for Uzbekistan.
As we can see, agriculture is unattractive due to the
long production cycle, natural hazards and large yield
losses during cultivation, harvesting and storage,
inability to automate biological processes and no
advancement in productivity. and novelty. The use of
information technology in agriculture was mainly
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VOLUME
04
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OCLC
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Publisher:
Oscar Publishing Services
Servi
limited to the use of computers and software for
financial management and business monitoring.
Recently, farmers have started using digital technology
to monitor crops, livestock and various elements of the
agricultural process.
When technology companies focused on agriculture,
technology developed and a sharp step was taken in
the segment, they learned to manage the entire cycle
of crops or livestock with the help of smart devices that
transmit and process current parameters together
with partners. From each of them, the object and its
environment (instruments and sensors that measure
soil parameters, vegetation, microclimate, animal
characteristics, etc.), as well as unobstructed
communication channels between them and external
partners. It is possible to automate the maximum
number of agricultural processes by connecting
objects into a single network, sharing and managing
data based on the Internet of Things, increasing
computer performance, creating a virtual (digital)
model through the development of software and cloud
platforms. ldi Creation of the entire cycle of production
and interrelated chain links, as well as with
mathematical precision, planning the work schedule,
taking emergency measures to prevent losses in case
of identified risks, possible income, production costs
and profit calculation.
"Goldman Sachs predicts that next-generation
technology
could
increase
global
agricultural
productivity by 70% by 2050" [3].
Agriculture is on the brink of the Second Green
Revolution. According to expert accounts, thanks to
Internet-based precision farming technologies, even
with the advent of tractors, an increase in yields on a
scale never before seen by mankind, the emergence of
herbicides and genetically modified seeds.
The world population is growing. In 30 years, humanity
will need 1.7 times more food than the current
production. For this, serious modernization of
agriculture is necessary.
According to United Nations projections, the world's
population will reach 9.8 billion people by 2050, and
food production will need to increase by 70% to feed it
[4].
This means that farmers must change their production
processes to make them as efficient as possible.
Technologies have developed, become cheaper and
improved to such a level that for the first time in the
history of the industry, it was possible to obtain
information about each agricultural object and its
surroundings, mathematically accurately calculate and
predict the algorithm of actions. result.
The industry farthest from IT has begun to receive
information. And with them, requests for vacancies for
professionals in the field of Big Data, Data Science,
mathematics, analytics, robotics.
Digitization and automation of the maximum number
of agricultural processes is included as a conscious
need in the development strategy of the world's
largest agro-industry and engineering companies.
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Publisher:
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Servi
By 2010, there were no more than 20 high-tech
agricultural companies in the world, and during 2013-
2016. Investors have invested in more than 1,300 new
technology startups with a total value of more than 11
billion dollars in 4 years. A new investment segment
AgroTech (Agrotech) was formed, which surpassed
FinTech (Fintech) in 2014. Canada, India, China and
Israel are also active.
The long value chain of agricultural products and the
many unsolved problems in the sector that can be
solved with the help of IT and automation are among
the main reasons for the investment attractiveness of
the industry.
Currently, elements of agriculture and modern IT tools
include: [6]
-SMT: GPS / Glonass trackers, fuel sensors;
- Animal activity sensor / bolus;
-Personal identifiers (RFID cards, IButton);
-parallel driving systems;
- precise farming systems;
-UAV / drones;
- Smart weather stations;
- Weighing instruments;
- IP cameras;
-Smartphones / Tablets;
- Animal milking systems;
-ERP systems.
The concept and essence of digital technologies in
agriculture.
The standard processing schedule (continuous
irrigation, fertilizers, chemicalization) does not take
into account local characteristics and natural variability
and leads to an ineffective result - overuse of resources
or undetected problems. Drought or excess moisture,
lack or abundance of fertilizer, weeds and insects
require immediate intervention. An outbreak of the
disease can occur unexpectedly, and it is not always
easy to determine its cause; with late detection and
improper treatment, the disease can destroy part of
the crop.
During the season, the farmer has to make more than
40 different decisions: what seeds to plant, when to
plant, how to treat, how to treat a sick plant, etc. field.
Lack of information for decision-making leads to loss of
up to 40% of the crop during planting, cultivation, care.
Another 40% is lost during harvesting, storage and
transportation. As scientists have found, except for the
weather, 2/3 of the loss factors can be managed with
the help of automated management systems (Hi-Tech
Management) [5].
The task of IT is to maximize the automation of all
stages of the production cycle in order to reduce
losses, increase production efficiency and optimize
resource management. But even in this case, the result
is only for plants or animals that are ready for
harvesting, but the profit is not guaranteed, because
the harvest needs to be collected, stored, processed
and transported to the buyer / consumer. Further
automation shows a high level of digital integration,
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International Journal Of Management And Economics Fundamental
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VOLUME
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ISSUE
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Publisher:
Oscar Publishing Services
Servi
which affects the most complex organizational
changes in business, but their implementation can
dramatically
affect
the
profitability
and
competitiveness of the product and the company as a
whole. Combining the received data with various smart
IT applications, processing them in real time, will
revolutionize decision-making for the farmer, which
will provide the results of the analysis of many factors
and the basis of further actions. In addition, the more
sensors, sensors and field controllers are connected to
a single network and exchange data, the more
intelligent the information system will be and the more
useful information it will provide to the user.
According to Uzbek experts, the general level of
automation and informatization of agricultural
enterprises has not developed satisfactorily. Even
providing farms with the simplest information
technology - a computer connected to the global
information network "Internet" - is the biggest
problem for Uzbek farms. At the moment, based on
statistical data, we can observe the following picture
of the use of information technologies in agriculture
around the world (Table 1).
The table shows that the most intensive use of
information technology is found in the European
Union. At the same time, the use of computers to
communicate with the global Internet rarely exceeds
50%. Most farmers work to provide food for
themselves and their families and do not consider it
necessary to increase the informatization and
automation of farms. But recently, a lot of work has
been done to introduce information technologies in
the agro-industrial complex. This applies primarily to
programs for optimizing the placement of agricultural
crops in zonal crop rotation systems and animal
feeding rations. Practical computer programs have
been developed for calculating the doses of fertilizers,
regulating the nutrition regime of plants in
greenhouses, as well as managing technological
processes in the processing and storage of meat and
meat products. There are land development and land
complex programs.
Table 1
Farmers using information technology (2024 data)
Country
Number of
farmers
Number of
personal
computers
Share of
farmers
Number of
Internet users
Share of user
farmers
person
%
person
%
Norway
70 000
52 000
74.3
40 000
57.1
Denmark
60 000
48 000
80
30 000
50
Finland
80 000
50 000
62.5
40 000
50
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Netherlands
100 000
60 000
60
50 000
50
Switzerland
30 000
24 000
80
14 000
46.7
Great Britain
80 000
60 000
75
30 000
37.5
Germany
170 000
75 000
44.1
55 000
32.4
Japan
426 000
144 000
33.8
52 000
12.2
Spain
100 000
45 000
45
10 000
10
France
330 000
110 000
33.3
25 000
7.5
Italy
260 000
80 000
30.8
10 000
3.8
Poland
200 000
100 000
50
5 000
2.5
Czech
175 000
30 000
17.1
4 000
2.3
Russia
275 000
9 000
3.3
3 000
1.1
Currently, the Republic of Uzbekistan ranks 76th in the
world according to the BCG rating for the development
of the digital economy. Calculation of the BCG
digitization index is based on the growth dynamics of
online spending and user activity. However, like most
indexes, the BCG digitization index is a statistical
indicator with a percentage of conventionality [8].
Agro-industrial complex (AIC) is the most important
inter-sectoral complex. It was created to provide the
population with food and is one of the main priorities
of the economy. AIK is a complex bioeconomic
production system. Its central link is agricultural
production, its main resources are land, climate,
weather, along with tools and labor resources, which
together constitute bioclimatic potential.
In the world of digital technologies, innovative
technologies must be introduced for effective
management in all areas of life. New tasks in
agriculture: feeding the growing world population,
meeting the need for high-quality food products and
services, increasing the profitability of the agricultural
enterprise, and increasing labor productivity are the
problems.
1. The digital economy has enormous potential to
stimulate economic development in all sectors,
including agriculture.
2. The Internet significantly activates existing markets
for goods, services and labor, as well as the principles
of operation of the agricultural sector.
3. The directions of further research can be seen in the
development of proposals for solving the problems of
digital transformation of agro-industry, in the
development of a system for ensuring digital economic
security.
4. For these purposes, the republic should work on the
creation of technological parks, research and
production clusters and other innovative projects,
extensive and convenient training of farmers in digital
literacy, introduction of digital technologies, coverage
of rural areas of the country. Implementation of e-
governance in the area and farm activities with 5G or
higher Internet.
Volume 04 Issue 11-2024
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
04
ISSUE
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103-110
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
5. All these measures require large financial
investments from the state, the training of farm
workers and specialists to train the population in the
basics of the digital economy. put in public service.
Thus, the "Digital Uzbekistan-2030" program is not the
next major state project of the country, it is an
important aspect of the innovative activity of the
Republic of Uzbekistan, and its main goal is not only to
reach a high level. development, but also integration
and interaction with the developed countries of the
world.
CONCLUSION
In conclusion, it should be said that the qualitative
development of economic sectors, social sphere and
state management system in the current period of
human development and in the near future is directly
related to the widespread introduction of digital
technologies. The prospect of our country's
development depends on the development of the
digital economy and the level of coverage of digital
technologies.
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