Volume 04 Issue 08-2024
44
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
08
P
AGES
:
44-51
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
In this article, the specific aspects of improving institutions and institutional relations are highlighted. Furthermore,
the article gives information about reasonable opinions and considerations. Additionally, the characteristics of
institutions and norms of the institutional environment are also discussed. Conclusions and suggestions are given at
the end of the article.
KEYWORDS
Institutions, institutional relations, state and society, institutional environment, ownership relations.
INTRODUCTION
It is a big change that new institutions and the
corresponding institutional environment were created
in the process of expropriating property from the state
and privatizing it in a historically short period of time in
Uzbekistan. It is gratifying that this allows effective
management of state assets in our country and
bringing their privatization to a new strategic stage.
The fact is, and this is not a new concept to anyone,
that any state and society, its economic agents operate
and develop within certain institutions. Over time,
Research Article
SPECIFIC ASPECTS OF IMPROVING INSTITUTIONS AND INSTITUTIONAL
RELATIONS
Submission Date:
Aug 02, 2024,
Accepted Date:
Aug 07, 2024,
Published Date:
Aug 12, 2024
Crossref doi:
https://doi.org/10.37547/ijmef/Volume04Issue08-04
Bozorboy Berkinov
Professor of Tashkent State University of Economics, Director of the Center for Institutional and Economic
Research, Uzbekistan
Sardorbek Akhadov
Foundation PhD student of TSUE, 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 08-2024
45
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
04
ISSUE
08
P
AGES
:
44-51
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
under the influence of internal requirements and
external factors, the development of institutions
becomes "obsolete", which hinders development. In
such cases, existing institutions and institutional
environment should be improved or new ones should
be introduced.
It will not be a mistake to note that what are the
characteristics of the institutions and norms of the
institutional environment, what is their role in the
development of the country, why markets or property
relations work or do not work? It allows to find answers
to the questions which changes in the social sphere
occurred due to internal reasons or because of one or
another decision of the government. These and other
similar questions play a key role in all stages of the
development strategy of New Uzbekistan, as well as in
the new Constitution. This is shown by foreign
experiences and past experiences of social and
economic development of Uzbekistan.
If we look at it from this point of view, in the work of
the President of Uzbekistan Sh. Mirziyoyev "Strategy
of New Uzbekistan" and the Decree of January 28, 2022
"On the development strategy of New Uzbekistan for
2022-2026" it is necessary to improve the norms of the
institutional environment and private ownership
mechanisms and introduce new institutions. priorities
were determined.
As a result of the reforms carried out in the last five
years, the necessary political-legal, socio-economic and
scientific-educational
foundations
for
the
establishment and development of New Uzbekistan
were created in our country. They have a positive
effect on the stable economic development of our
country at the present time. According to statistics, the
population of Uzbekistan in 2023 compared to 2020
will be 11.5 million. increased per person. The volume of
GDP production in the country increased by almost 270
times during this period. GDP per capita increased 190
times. According to the research carried out abroad
and, in our country, the influence of institutions and
institutional norms related to the state, society and
business activity on GDP is determined to be equal to
4.5-9% for every 10 years.
Taking this into account, 888.3 trillion will be created in
our republic in 2022. about 80 trillion soums of GDP
volume. soums, i.e. 9 percent was produced due to the
share of institutions and institutional norms. At the
same time, the Program for the formation of a new
institutional environment was approved, which
includes official rules and norms that unite 100 goals,
consisting of 7 priority
directions for the
implementation of the development strategy.
Program To establish a new management system as a
general institutional model determining the structural
changes of the economy of Uzbekistan in a new
institutional environment; along with the effective use
of land, water, labor and other resources, it creates
conditions for accelerating economic relations,
bringing the development of our country to a new
level, and ensuring high rates of economic growth.
Volume 04 Issue 08-2024
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International Journal Of Management And Economics Fundamental
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OCLC
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Publisher:
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From this point of view, the gradual implementation of
strategic reforms in the field of ownership in
Uzbekistan requires the development of self-justified,
effective institutions, norms and mechanisms, as well
as the protection of property rights. Taking this into
account, it is necessary to create new institutions and
strengthen the role of institutions in the development
of the multi-sector economy and its branches, to
further improve the norms of private ownership and
protection of the rights of owners using foreign
experiences, and to widely introduce into practice the
methods of reducing transaction costs arising in the
contractual processes in property relations.
The consistent performance of work in the directions
related to the implementation of these priority tasks of
supporting sustainable economic development, as
defined in the "New Uzbekistan Strategy" of the
President, is a guarantee of success, and it is the pride
of every citizen of our country.
In conclusion, the strategy of New Uzbekistan, in the
transition from the strategy of actions to the strategy
of development, provides comprehensive stimulation
of the emergence and development of new
institutions, increasing the influence of economic
sectors, activation of the social sphere, support of the
population, and the widespread penetration of
institutional and legal norms of protection into life.
In different periods, scientists and specialists have
established the essence of institutions and the reasons
for their origin [3,4]. For example, American scientists
T. Veblen [5] defined institutions as follows:
"Institutions are the usual way of thinking that people
live by following them" or "Institutions are the result
of processes that occurred in the past, they are
adapted to the conditions of the past and, in turn, the
present time. not fully adapted to the requirements".
At the end of the last century, by the American scientist
E. Erdward [6] "Institutions are social goods that are
used by many individuals everywhere and every day
and are mainly characterized by their uniqueness.
Institutions simplify the exchange process. They are an
integral part of the decision-making process that
transforms individual decisions into positive decisions.
According to J. Hodgson, another US scientist [7],
"Institutions are social organizations that lead to the
creation of long-term and stable patterns of behavior
through tradition, custom or legal restrictions."
When talking about institutions, it is important to note
that institutions cannot be seen, physically felt or
measured. These are special constructions, invisible
mechanisms created by the human mind. Institutions
reflect the way of thinking characteristic of a particular
group of people.
The above-mentioned T.Veblen recognized that
"society was institutionalized before." Taking this into
account, B.Z.Milner wrote to D.North [8] at the
beginning of his words: "Institutions are constraints
developed by people and coercive factors that
structure their mutual cooperation. All these together
form the driving force of society and economy.
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Publisher:
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Servi
In general, many definitions are given to the concept of
"institute" in the scientific literature, taking into
account their specific characteristics. The authors of
the research emphasized some features of the concept
of "institute" or specific forms corresponding to this
feature. Taking into account all the definitions
presented in the literature, if they are combined into a
single system, removing the repetitive cases, then it is
possible to create a set of symbols that have the
concept of this institution.
The existing tariffs in the literature serve as a source for
such a description and distinguishing of the signs of the
institute. The main goal of our research is to determine
their characteristics through the essence of the
definitions given below, and to gather additional
(external) ideas that form new institutions embodied
in the concept of "institute".
1. The institution is a social structure and belongs to the
social environment. This means, first of all, that the
sign of the concept of "institution" means the
existence of social relations between people. "Any
institution is related to social interaction," Hodgson [9]
pointed out. Dj. North writes, "Social institutions are
always scattered in individuals trying to live and work
together." "We create it (the institution) while
conducting our social life" [10]. In other words, the
concept of "institute" reflects the social description of
the cocktail. Institutions, thus, express the content of
social life.
2. An institution is an external (social in origin)
regulatory force that limits the choice of individuals
and conduct of business. Institutions are objects that
directly affect the individual behavior of economic
agents. An institution is an external environment that
opposes an individual, is social in origin, and is
considered the basis of his behavior. "In relation to
human freedom, an institution is an external
environment that teaches what to do and what not to
do when connected with law and values" [11].
"Society affects individuals through institutions, and
they appear as a "social border", T. Eggertsson [12]
states. In this, social boundaries imposed by
institutions combine with familiar boundaries in
economic theory, such as income and technology, to
influence human motivation and shape their choices.
Institutions structure and limit the behavior of
individuals and create incentives for individual
behavior. "Institutional economic theory - write
Furuton and Richter - deals with a system that limits the
possible behavior of individuals" [13]. According to D.
North, the purpose of any such institutions is to direct
individual behavior to the necessary flow. The institute
provides a structural framework for daily activities.
This is "the limit level created by man" [10]. He "clarifies
the composition of incentives in society, especially in
the economy. According to Durkheim, institutions are
any form of thoughts, actions and feelings that limit
the behavior of individuals [14]. "Institutions limit
behavior and ensure it," says Hodgson [9]. Institutions,
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he claims, are expressed in the form of clear and
undefined boundaries subject to rational calculated
individual action [7].
3. The institution creates a certain structural structure
of the interaction of individuals. Institutions do not
deal with isolated, temporary individuals. They not only
affect and limit individual behavior, but also limit the
attitude of one individual to another. Thus, the
institution can be viewed as a mechanism of social
control in a certain stable repetitive form, which
constitutes the interaction between people, that is,
given by this interaction.
4. Institution is a rule, i.e. "it is conformity to the norm
of normative flexibility (boundary) as a condition that
manifests itself in society and causes Y under X
conditions" [9]. A possible (expected) model of
individual action or social interaction is given by the
individual in the form of a certain limit or normative
model of self-control. Thus, the sign of an institution is
the presence of rules (system of rules) of one form or
another.
5. The institution is an influencing force. According to
D. North, the concept of "institution" embodies not
only formal boundaries (rules, laws, constitutions), but
also informal boundaries (self-restraint, norms of
negotiation, and voluntary codes of self-restraint), as
well as " it also embodies certain recommendations
that compel the implementation of this or that" [10].
6. An institution is a supervisory action or authority.
Coercion is the rules and mechanisms with a general
basis, the emergence of the activity of a whole
element, namely one or another social subjects, which
embodies the result of their behavior. Briefly, an
institution is a movement, and the content of this
movement is power (control).
7. An institution is a real behavior (restraint) or rule in
action. The result of applying the rule, as well as the
coercive mechanism of its implementation, or in
general, the act of controlling individual behavior, is
considered a real behavior, and in one way or another
it is an effective rule or "rule in action". "Institutions,"
writes Odintsova, "can be defined as a set of rules in
action" [15].
8. An institution is a social order. A certain social order
is formed on the basis of existing institutions (rules)
and a real sequence of behavior. Therefore, it is
possible to look at the institution as a way of
organizing the mutual behavior between people that
appears on the basis of a certain social order or
institution - rule.
9. Institute is an organization. They are the factors that
direct and subjugate people's activities and equally
shape their social behavior.
These definitions include the main characteristics of
institutions, reflect their main tasks and laws of
development, and emphasize the importance of
institutions for the development of society, the state
and the economy, in deepening reforms in the
management and transformation of state assets.
Summarizing all the above-mentioned situations,
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based on the current interpretations of the
institutional theory, the concept of "institute" can be
defined as follows.
An institution is a system of official rules and informal
norms that determine mutual relations between
members of society. The basis of institutions is the
norms of which its component parts are calculated.
The norm is the main element used in the
implementation of the individual's choice in the
institutional environment. This element: has the task of
maintaining order; requires the execution of
compulsory actions in the system of mutual
cooperation; reflects regularity and regularity based on
social, economic, legal sanction in the movement of
individuals; determines how a person should behave in
different situations.
CONCLUSIONS
1. Institutions have played an important role in all
stages of the development of society. They are formal
and informal rules consisting of norms that determine
the adoption of management decisions in society, the
interaction of people and economic participants.
Official rules are reflected in the country's
Constitution,
laws,
administrative
and
other
documents. Informal norms, on the other hand, are
expressed in the rules that arise through customs,
traditions, and other similar ways of life.
3. With the development of the society, the existing
institutions and the formal and informal rules that form
the basis of them change and improve. Such changes
are determined by social, economic and political
conditions.
4. The coordinated operation of institutions has a great
impact on the effectiveness of the state system. The
activity of institutions in most cases depends on norms.
The concept of a norm has the task of maintaining
order, which requires mandatory behavior in a system
of mutual cooperation. Norms take the form of a
cooperation strategy, a rule, and in particular, a norm
itself. There are forms of rationality such as complete,
incomplete, orderly, based, norm of action.
5. Norms are the main guarantee of the stability of
mutual relations of individuals. The basic law
(constitution) of the economy refers to the system of
norms that ensure the economic activity of individuals.
The system of norms of the market economy is a set of
mutually conditioned norms of behavior (complex
profit-seeking, rational purposeful behavior, non-
individualized trust, benevolence, openness) that
enable the execution of transactions in the market and
the achievement of equilibrium in it.
6. From the point of view of the development of
institutions, one of the main functions of the state is
the protection of private property rights. Private
property is the main driving force behind economic
competition and an effective mechanism for creating
economic growth and new jobs. From this point of
view, it is necessary to evaluate the impact of
institutional norms on problematic situations arising in
ownership relations as an important factor of
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economic development, to protect private property
rights and to improve the institutional mechanisms of
the state guarantee for the execution of contracts.
7. At the current stage of reforms, it is important to
assess the institutional structure of Uzbekistan's
economy and its role in creating the necessary
conditions (opportunities) for economic growth, and
to identify institutional restrictions that have a
negative impact on economic development. Taking
this into account, it is necessary to analyze institutional
factors in the development of large corporate
structures (enterprises) and to develop proposals for
eliminating institutional restrictions.
8. In competitive conditions, changes in ownership and
efficiency of enterprises tend to increase transactions
and their costs. Research on this problem has a
theoretical classification, and they do not take into
account the practical aspects of transaction costs of
economic development. From this point of view, it is
urgent to improve the ways and institutional
mechanisms of optimizing transaction costs in market
relations.
9. Forecast options for increasing GDP in Uzbekistan
should not be dependent on external conditions,
should have an innovation-investment character rather
than an inertial character, and should become the main
criterion for the effectiveness of the work of relevant
state and non-state institutions. Also, economic
growth in the basic sectors of the economy, especially
in industry and agriculture, should be achieved not at
the expense of expanding the use of resources, but at
the expense of qualitatively improved institutional
norms and production factors.
10. It is necessary to determine the current state of the
institutional environment in Uzbekistan, its structural
structure, and the institutional reasons behind
economic growth rates that are lagging behind
expectations, as well as to evaluate the statistical
dependence of GDP growth rates and efficiency of
investments aimed at creating new added value by
including institutional factors in econometric models.
In turn, it is necessary to develop norms for the
formation and use of human capital and the
development of professional educational institutions
as the main factor for the sustainable development of
the new privatized system.
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