International Journal of Management and Economics Fundamental
10
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 04 2025
PAGE NO.
10-14
10.37547/ijmef/Volume05Issue04-03
The Importance of Industrial Development in The
Regions and The Main Directions for Their Effective Use
Sattikulova Gulnora Akhmadkhanovna
Senior lecturer at the Department of Economics at Andijan State Texnikal Institute, Uzbekistan
Received:
18 February 2025;
Accepted:
15 March 2025;
Published:
17 April 2025
Abstract:
This article highlights the economic trends and factors influencing the development of industry in the
Andijan region of the Republic of Uzbekistan, based on the significance of industrial production and regional
specialization. The development of the region has been studied and analyzed through the lens of its industrial
sectors. Development directions have been proposed based on the region’s revenues
.
Keywords:
Regional industry, industrial production, regional industrial specialization, internal capabilities and
opportunities.
Introduction:
Since the early years of independence,
Uzbekistan has pursued a targeted territorial policy and
implemented
profound
institutional
reforms.
Currently, comprehensive regional development
measures are being undertaken, with targeted regional
programs in progress.
As a logical continuation of these territorial reforms, in
January 2017, the Cabinet of Ministers of the Republic
of Uzbekistan adopted a Resolution "On the approval
of the regulation on the information-analytical
department for the comprehensive socio-economic
development of territories." Furthermore, in February
2017, Presidential Decree No. PF-4947 introduced the
“Action Strategy for Five Priority Areas of Development
in 2017
–2021” [1], and Decree No. PF
-60 dated January
28, 2022, launched the "New Development Strategy of
Uzbekistan for 2022
–
2026" [1].
The third direction of this strategy defines several
priority tasks, such as sustainable regional industrial
development,
construction
of
new
industrial
enterprises, enhancing the regional economy through
increased export and industrial potential, and creating
favorable conditions for the establishment of
industries. These tasks aim to fully realize the economic
interests of regional economic entities, optimize
production, strengthen intra- and inter-sectoral
cooperation, expand localization processes, and
effectively utilize this sector’s potential to remain
competitive in the market. Important focus areas
include increasing local production, developing
interregional
industrial
cooperation,
boosting
employment by leveraging internal regional resources,
and improving material well-being based on this
foundation. These are becoming increasingly significant
in regional economic policy.
Decree No. PF-60 of January 28, 2022, outlines
objectives from 21 to 36 under the third direction of the
New Development Strategy of Uzbekistan for 2022
–
2026 titled “
Ensuring Accelerated Development and
High Growth Rates of the National Economy
.” The
strategy sets the following goals for industry:
•
Goal 22
: Increase industrial production volume
by 1.4 times, continue industrial policies aimed at
stabilizing the national economy and increasing the
industry’s share in gross domestic product.
•
Goal 24
: Ensure uninterrupted electricity
supply to the economy and actively implement "green
economy" technologies in all sectors, improving the
energy efficiency of the economy by 20%.
•
Goal 28
: Increase the export potential of the
Republic and reach an export volume of 30 billion USD
by 2026.
•
Goal 29
: Create conditions for organizing
entrepreneurial activity and establishing stable income
sources, increasing the private sector’s share in gross
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
domestic product to 80% and in exports to 60%.
Today, the industrial sector offers effective solutions to
challenges such as ensuring market balance, increasing
economic competitiveness and population income,
localizing production, and generating employment.
Notably, creating one job in manufacturing leads to the
creation of two to three jobs in other sectors [3].
The dynamism of the production network significantly
influences the development of other industries and
sectors of the economy. In particular, the development
of the food and light industry sectors stimulates the
growth of agriculture, forestry, and fisheries [6].
Assessing the development of industry and its sectors
in regions is a complex economic process and cannot
be measured by a single indicator. Therefore, it is
appropriate to consider various development trends
when evaluating regional industrial progress. This
system of indicators is reflected in the table below (see
Table 1).
Table 1
System of indicators characterizing the level of industrial development in the region
[6].
Indicators
1st Order
2nd Order
3rd Order
4th Order
Economic indicators
Industrial output per capita Industrial production
index
Real Sector
Developme
nt Index
Economic
activity
index
Export volume per capita
Export index
Labor productivity in
industry
Labor productivity index
Employment in industry
(thousand people)
Employment network
index
Technological Indicators
Capital productivity
Capital Productivity
Index
Technologi
cal Level
Index
Capital intensity of
industrial production
Incremental Capital
Output Ratio
Number of patents
obtained from networks
(per 100,000 people)
Object indicators
Number of facilities in the
network
Employment level
Production
function
TFP
Value of fixed production
assets
Capital intensity and
profitability
Investment in fixed capital
Natural and raw material
resources
Employment level
Project indicators
Number of high-tech
production creation
projects
Share of high-tech
products in industrial
output
Integral
diversificati
on index
Economic
openness
index
Number of high-tech
Share of high-tech
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
manufacturing projects
products in industrial
output
Participation of domestic
business entities in large
investment projects
Region's participation
ratio in large investment
projects
Number of localization
projects
Localization ratio
Number of export
expansion projects
Share of products
intended for new export
in total industrial output
Integral
export
expansion
indicator
Share of exports in GDP
Export orientation ratio
of the economy
Share of foreign direct
investment in total
investment volume
Foreign investment
participation ratio
Number of operating
enterprises with foreign
capital participation
Based on the above-mentioned factors, it can be stated
that each region will have its own production potential.
Accordingly, the level of industrial production in one
region may exceed or lag behind that of another.
The main objectives of regional socio-economic
development programs include: the rational use of
untapped reserves and opportunities of the regions, as
well as the available rich raw material and resource
base; ensuring the development of production in close
connection with regional capacities; utilizing existing
industrial enterprises to their full potential; organizing
production in existing buildings and facilities;
diversifying production and promoting deep processing
of raw materials; manufacturing high-tech products
with high added value; and creating new jobs. Through
the implementation of such programs, the population
is targeted towards addressing key issues such as
increasing employment levels [5].
In the development of these programs, special
attention is paid to the following areas [4]:
•
For the comprehensive development of
regions
–
an analysis of conditions in the medium term,
assessment of their impact, identification of existing
principles and challenges;
•
A system of target indicators developed using
modern methods of socio-economic forecasting,
linking target indicators with key developmental
programs being implemented or under development;
•
The development of concrete measures to
achieve the set goals, taking into account specific
funding sources.
The regional socio-economic development programs
envisage a fundamental improvement of the regional
organization of industrial production based on:
•
The exploration of new deposits and the
expansion of the mineral resource base, the
introduction of modern, energy-saving, and highly
efficient technologies for the extraction and processing
of mineral raw materials in strategically important
industries
–
such as the oil and gas complex and the
mining industry
–
ensuring sustainable development
through these efforts;
•
The expansion of export-oriented production
based on the competitive advantages of each region,
and the establishment of new production facilities in
the construction materials sector that meet
international quality standards;
•
The rapid development of processing
industries in the textile sector based on local
agricultural raw materials, primarily increasing the
volume of cotton fiber processing in domestic
enterprises;
•
The broad development and regional
placement of small and micro enterprises, as well as
branches of large enterprises focused on processing
local raw materials and producing competitive finished
products [7].
Regional development programs prioritize the
advancement of industrial enterprises in all cities and
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
districts of each region. Through the rational
coordination of sectoral development programs and
the implementation of specific investment projects,
structural transformations related to the placement of
industrial enterprises are expected to be achieved [6].
In Andijan region, between 2022 and 2026, the gross
regional product and industrial output are projected to
increase by 1.4 times, agricultural production by 1.2
times, service sector volume by 3.0 times, and
construction activities by 1.4 times. Target indicator
parameters have been developed for each district.
In collaboration with the Ministry of Economy and
Finance, the Ministry of Investments and Foreign
Trade, and the Government of Andijan region:
•
Specific target measures have been developed
to achieve the parameters of the approved 2022 target
indicators;
•
By November 1 of each year, comprehensive
measures aimed at achieving the target parameters for
upcoming years and implementing the “road map” are
to be submitted for approval to the Cabinet of
Ministers [5].
During the 2022
–
2026 period, the following tasks were
assigned to local authorities to ensure the effective
implementation of the developed programs:
•
Regularly study the challenges that hinder the
implementation of the projects included in the
programs and take timely measures to eliminate them,
resolve any issues arising during implementation and
operation, and remove bureaucratic obstacles;
•
Effectively organize the process of obtaining
reliable information on vacant or inefficiently used
buildings and structures in the region and promptly
provide it to business entities;
•
Pay special attention to the process of
connecting ongoing projects in the region to power,
gas, water, sewage, and heating systems, applying best
practices in this field;
•
Identify the specific characteristics of each
region and mobilize all available opportunities based
on these features to create a more favorable
environment for project initiators to develop new
projects for the upcoming year;
•
Determine opportunities for the development
of ongoing projects, especially in neighborhoods, and
define paths for their implementation, recommending
exemplary project structures and supporting them;
•
Focus on improving the composition of
projects included in the programs by types of activity,
particularly on establishing modern production
networks based on high technologies in the industrial
sector;
•
Address the tasks of expanding participation in
foreign economic activity by providing concrete and
effective support to projects that have begun
producing export-oriented products;
•
Mobilize all possibilities to increase the
production of high value-added products through the
effective use and thorough processing of existing raw
materials when forming new projects for the next year;
•
Establish at least three processing enterprises
for raw materials in districts with a rich base of meat,
dairy, and fruit-vegetable resources but lacking a single
enterprise for their processing;
•
In determining the strategic direction of
industrial policy in the regions, focus first on
eliminating industries in technically and technologically
underdeveloped regions, and secondly, on equipping
enterprises with modern, cutting-edge technological
advancements.
In 2022, a comprehensive set of measures will be
implemented
to
develop
the
engineering,
communication, production, and service infrastructure,
as well as to construct, reconstruct, and repair social
facilities in the Andijan region [5].
As part of this decision, the Ministry of Economy and
Finance plans to allocate funds from the republican
budget.
The financing of projects implemented through the
local budget of the Andijan regional administration is
expected to be carried out within the specified time
frame.
CONCLUSION
In conclusion, for ensuring regional stability and
economic
growth,
achieving
deep
structural
transformations in the regions, and reaching the
forecasted regional targets, it is possible to effectively
utilize the industrial potential of the regions and
achieve the set goals more rapidly. However, this can
be fully realized only if the above-mentioned measures
are implemented comprehensively.
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
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