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TYPE
Original Research
PAGE NO.
5-9
OPEN ACCESS
SUBMITED
18 February 2025
ACCEPTED
15 March 2025
PUBLISHED
17 April 2025
VOLUME
Vol.05 Issue04 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
The Significance of
Regional Industrial
Development and Key
Strategies for Its Efficient
Utilization
Sattikulova Gulnora Akhmadkhanovna
Andijan State Texniсal Institute,
Senior lecturer at the Department of
Economics, Uzbekistan
Abstract:
The article highlights economic trends and
factors influencing the development of industry in the
Andijan region of the Republic of Uzbekistan. During the
development of the region, the industry was studied
and analyzed. Based on the region's income,
development directions are proposed.
Keywords:
Regional industry, industrial production,
regional industrial specialization, internal capabilities
and capabilities.
Introduction:
Since the first years of independence, our
country has pursued a great territorial policy and
implemented deep institutional changes. Today,
measures are being taken for the comprehensive
development of the regions, and targeted regional
programs are being implemented.
As a logical extension of these territorial reforms, in
January 2017, the Cabinet of Ministers of the Republic
of Uzbekistan adopted a resolution "On approval of the
regulations on the Information and Analytical
Department
for
integrated
Socio-economic
development of Territories". adopted, and by February
2017, by Decree of the President of the Republic of
Uzbekistan No. PF-4947 "In 2017-2021, the Republic of
Uzbekistan adopted the " Strategy of Actions in
fivepriority areas of development"[1] and Resolution
No. PF-60 of January 28, 2022 "On the new
development Strategy of Uzbekistan for 2022-2026" [1].
The third direction of this strategy defines a number of
priority tasks, such as sustainable development of the
region's industry, construction of new industrial
enterprises, sustainable development of the region's
economy by increasing export and industrial potential,
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and creating favorable conditions for the location of
production facilities. . These tasks are to fully realize
the economic interests of economic entities in the
region, optimize production, strengthen intra-and
inter-industry cooperation and expand localization
processes, as well as effectively and fully use the
opportunities of this sector, and be competitive in the
market. issues of increasing the production of local
products,
developing
interregional
industrial
cooperation, ensuring employment growth through
wider use of the internal capabilities of the regions and
improving material well-being on this basis. - it is
becoming increasingly important in regional economic
policy.
PF-60 dated January 28, 2022 "On the third direction
of the new development strategy of Uzbekistan for
2022-2026" ENSURING ADVANCED DEVELOPMENT
AND HIGH GROWTH RATES of the NATIONAL
ECONOMY " is attached from 21 to 36 goals. The new
development strategy sets the following goals for
industry: Goal 22: Increase the volume of industrial
production by 1.4 times, continue the industrial policy
aimed at ensuring the stability of the national economy
and increase the share of industry in the gross
domestic product.
Goal 24: Uninterrupted supply of electricity to the
economy and active implementation of Green
Economy technologies in all sectors, increasing the
energy efficiency of the economy by 20%.
Goal 28: Republics export potential to increase
Republics in 2026 through export volumes of US $ 30
billion to the dollar.
Goal 29: Entrepise activities organize make and
permanent income sources formation for conditions
create, private sector gross domestic product share up
to 80 percent and export share up to 60 percent deliver
Today, the industry makes it possible to effectively solve
such tasks as ensuring the necessary balance in the
market, increasing the competitive of the economy and
household incomes, localizing production, and this
industry also plays an important role in creating jobs. In
particular, the creation of one job in the manufacturing
industry leads to the creation of two or three jobs in
other industries[3].
The dynamism of the production network has a
significant positive impact on the development of other
industries and sectors of the economy. In particular, the
development of food and light industries encourages
the development of agriculture, forestry and fisheries.
[6].
Assessing the development of industry and its branches
in the regions is a complex economic process, and this
development cannot be measured by one indicator.
Therefore, when assessing the development of the
region's industry, it is advisable to take into account
various trends in its development, and this system of
indicators is reflected in the table below (see table 1).
Table 1
A system of indicators that characterize 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
Development
index
Economic
activity
index Export volume per capita
Export
index Industrial
productivity
Index Industrial employment,
thousand people
Network employment index
Technological indicators
Capital productivity
Index of capital
productivity
Index of
technologica
l level
Capital intensity of industrial
production
ICOR
Number of patents received
from the network (per 100,000
people)
Object indicators
Number of objects in the
network
Level of occupancy
Production
function
Total Factor
productivity
(TFP)
Cost of capital production funds
Capital intensity and
profitability
Investments in fixed assets
Natural and raw materials
resources
Level of territory security
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Project indicators
Number of projects to create
high-tech production
Share of high-tech products
in industrial production
Integral index
of
diversification
Index of
economic
openness
Number of high-tech production
projects
Share of high-tech products
in industrial production
Participation
of
domestic
business
entities
in
large
investment projects
Participation rate region's
participation in major
investment projects
Number of localization projects
Localization
coefficient
Number of export expansion
projects
Share of products intended
for new exports in the volume
of industrial products
Integral
indicator of
export
expansion
Share of exports in GDP
Coefficient of export
orientation of the economy
Share
of
foreign
direct
investment in total investment
Foreign investment
participation ratio
Based on the above factors, we can say that each
region will have its own production potential, and
therefore the level of industrial production in one
region will be higher than the level of industrial
production in another region, or vice versa.
The main objectives of regional socio-economic
development programs are: rational use of unused
reserves and opportunities of the regions, as well as
available resources rich in raw materials and resources,
ensuring the development of production in a holistic
connection with the regions, using existing industrial
enterprises at full capacity, as well as organizing
production in existing buildings and structures,
diversifying production and deep processing of existing
production of high-tech products with high added
value and creation of new jobs. Thanks to the
organization, the population focuses on solving such
issues as increasing the level of employment [5].
When developing these programs, the main focus is on
the following areas [4]:
- for integrated regional development-analysis of
conditions in the medium term, assessment of their
impact, identification of existing principles and
problems;
- a system of target indicators developed using modern
methods of developing socio-economic forecasts,
linking target indicators with the most important
target development programs implemented and being
developed;
- development of specific measures to achieve the
goals set, taking into account specific sources of
funding.
The programs of socio-economic development provide
for a radical improvement of the regional organization
of industrial production based on:
▪
development of new deposits and increase of
reserves of mineral raw materials base, introduction of
modern, energy-saving, highly efficient technologies of
extraction and processing of mineral raw materials in
strategically important industries - oil and gas complex
and mining industry. industry that provides sustainable
development through;
▪
expansion of export-oriented production based
on the competitive advantages of the districts ,
organization of new production facilities in the
construction materials industry that meet international
quality standards;
▪
based on the use of local agricultural raw
materials, first of all, the rapid development of
processing industries in the textile industry, an increase
in the volume of processing of cotton fiber at
enterprises of our country;
▪
extensive development and placement of small
enterprises and microenterprises in the region,
branches of large enterprises for processing local raw
materials and producing competitive finished products
[7].
.
Regional development programs provide that the
development of industrial enterprises will be a priority
in all cities and districts of the regions, and as a result of
rational coordination of industry development
programs and the implementation of specific
investment projects, structural changes related tothe
location of industrial enterprises will be achieved [6].
In Andijan region, in 2022-2026, the volume of gross
regional product and industrial output will increase by
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1.4 times, agricultural production-by 1.2 times, the
volume of services
–
by 3.0 times, and the volume of
construction works
–
by 1.4 times. Parameters of
target indicators in the context of districts are
developed.
Jointly with the Ministry of Economy and Finance, the
Ministry of Investment and Foreign Trade and the
Government of the Andijan region:
Specific targeted measures have been developed to
achieve the parameters of the approved target
indicators for 2022;
Every year, until November 1, comprehensive
measures aimed at ensuring the target parameters of
the coming years and implementing the "road map"
should be submitted for approval by the Cabinet of
Ministers [5].
In 2022-2026, local self-government bodies are set the
following tasks to ensure the effective implementation
of the developed programs:
- regularly study the problems that hinder the
implementation of projects included in the programs,
and take measures to eliminate them in a timely
manner, any problems that arise during the
implementation and operation of projects, and
eliminate bureaucratic obstacles;
- effective organization of processes for obtaining
reliable information about empty or inefficiently used
buildings and structures in the region in a short time
and presenting it to business entities;
- pay attention to the processes of connecting projects
implemented in the region to energy, gas, water and
sewerage, heat supply and other similar engineering
and communication networks and apply best practices
in this regard;
- identify the characteristics of each region and use
them to mobilize all available opportunities to create a
more favorable environment for project initiators to
form new projects for the next year;
- identify existing opportunities for the development of
organized projects, especially in microdistricts, and
identify ways to implement them, and on this basis
recommend and support exemplary forms of project
organization;
- Focus on improving the composition of projects
included in the programs by type of activity, in
particular, on the organization of modern production
networks based on high technologies in the industrial
sector;
- solving the tasks of expanding its participation in the
field of foreign economic activity by providing concrete
and effective support to projects that have reached the
production of products for export in the region;
mobilize all opportunities to increase the production of
high-value-added products through efficient use of
existing raw materials and careful processing of them in
the formation of new projects for the next year;
- creation of at least 3 enterprises for processing raw
materials of this type in areas with a rich raw material
base of meat, milk and fruits, but without a single
enterprise for their processing;
- when determining the strategic direction of industrial
policy in the regions, firstly, focus on the elimination of
production facilities in technically and technologically
backward regions, and secondly, on equipping
enterprises with modern, state-of-the-art achievements
in engineering and technology.
In 2022, it will be implemented on the basis of
comprehensive measures for the development of
engineering and communication, production and
service infrastructure, as well as the construction,
reconstruction and repairof social facilities in the
Andijan region [5].
As part of this decision, the Ministry of Economy and
Finance plans to allocate funds from the national
budget.
Financing of projects implemented at the expense of the
local budget of the khokimiyat of Andijan region, within
the specified time frame.
In short,to ensure regional stability and economic
growth, realize deep structural changes in the regions
and achieve the planned parameters of the regional
forecast, it is possible to effectively use the potential of
regional industry and quickly achieve the goal. it shows
its full effect only if the above-mentioned measures are
carried out in a comprehensive manner.
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