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ON ECONOMIC COOPERATION OF THE REPUBLIC OF UZBEKISTAN
MECHANISMS OF ENSURING
BOTIROV J.E.
ISFT INSTITUTI
“International School of Finance and Technology “
Abstract:
This article describes the essence, importance and theoretical foundations of
international economic integration. In addition, the article presents the stages of development of
international economic integration and its impact on the economy of countries are described,
Second, reach regional investment agreements that increase the investment attractiveness of
Central Asia for foreign entrepreneurs. Countries should adopt uniform investment conditions to
remove internal barriers, reduce bureaucracy, and create tax-free zones and territories.
Key words:
integration, free trade, common market, globalization, development strategy,
international economic.
Today, the modern world is developing through integration processes. In different regions of the
world, integration is formalized in the form of trade, economic, currency, customs and political
unions. This is an objective and natural process. Integration processes are deepening, improving
and strengthening on the scale of our planet. Integration processes, first of all, are manifested in
the formation of many international and non-governmental organizations. On the one hand, this
process occurs under the influence of globalization, on the other hand, this reality directly brings
global economic changes to a higher level. In such conditions, each country is required to
develop its economy, pursuing national interests and at the same time, on the basis of mutually
beneficial cooperation with other countries, to be an active participant in integration groups.
Implementation of cooperation through international economic integration primarily presupposes
the effective use of economic opportunities, and therefore means a joint solution to problems that
may arise in this process.
In the development strategy of the new Uzbekistan for 2022-2026: to increase the volume of the
republic's exports to 30 billion US dollars in 2026 by increasing the export potential of the
republic; to increase the export potential of the republic by actively continuing the system of
support for the activities of exporting enterprises; further development of the export potential of
local industry while fully using existing opportunities; introduction of standards that meet
foreign market and international requirements and attraction of well-known brands; increase the
share of the private sector in exports to 60%; improvement of the system of organizational and
financial assistance to exporting enterprises; increase the volume of finished and semi-finished
products in exports by 3.3 times, selection of 200 exporters based on the idea of "New
Uzbekistan - a country of competitive products" on the basis of an open competition, turning
them into leading exporters and ensuring comprehensive support; Particular attention is paid to
such issues as the creation of free trade zones in border areas with neighboring countries.
The relevance of international economic integration lies in the fact that in the modern world
economy no country can fully and completely develop without economic integration with other
countries. Therefore, an in-depth study of integration processes in the world is a requirement of
the modern era. Therefore, the purpose of the research work is to describe the theoretical aspects
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of international economic integration and analyze its current trends. It should be noted that the
main theories of integration were formed directly within the framework of Western European
integration. In the middle of the 20th century, scientific concepts of the integration process were
built around the idea of creating a single space based on the unity of the institutional system,
cultural symbols and economic complex. To significantly improve economic indicators on such
issues as mutual trade, interregional investments and joint regional industrial cooperation of the
Central Asian countries, it is necessary to create a basis for practical steps. Central Asia, with a
population of more than 70 million people, still does not fully use its economic, transport and
energy potential.
In this regard, it is important to:
First, conclude bilateral and multilateral trade agreements that remove any barriers to the
movement of goods, services and people. These agreements should address a range of issues,
including trade in goods, trade in services, investment, intellectual property, rules of origin,
dispute resolution mechanisms, etc.
Second, reach regional investment agreements that increase the investment attractiveness of
Central Asia for foreign entrepreneurs. Countries should adopt uniform investment conditions to
remove internal barriers, reduce bureaucracy, and create tax-free zones and territories.
Third, create joint infrastructure projects that ensure and facilitate economic interaction between
people in the region. Create joint ventures and participate in the production of goods and services
that have export potential outside the region.
Finally, launch cross-border infrastructure projects for business communities and the population,
reducing border crossing time and increasing the efficiency of the border customs service.
These issues have been frequently addressed in President Mirziyoyev’s speeches. However,
since these issues cannot be resolved unilaterally, joint work at the state level is needed to
advance them. In addition, it is important to remember that significant economic changes do not
happen overnight, and trying to create all these economic conditions at once can be very difficult.
Therefore, it is advisable for states to focus on addressing these issues in stages, allowing
sufficient time for their adoption at both the regional and national levels.
“The general trend of power change has influenced the improvement of regional cooperation
after a long period of stagnation in bilateral and regional relations”
At the domestic level, the potential benefits, costs and challenges of an economic alliance need
to be explored and assessed. This stage may involve consultations with stakeholders, including
businesses, governments and civil society. States should then hold preliminary consultations at
the regional level to determine interests, discuss priorities and identify common areas of
agreement. In addition, regional trade agreements involve addressing a range of issues, including
trade in goods, trade in services, investment, intellectual property, rules of origin and dispute
resolution mechanisms.
The final stage is the creation of mechanisms for control and monitoring of compliance by the
participating countries with the terms of the agreement, which imply the existence of a dispute
resolution mechanism. When systematizing the set of concepts, theories and approaches in the
study of integration, researchers usually rely on the classification methodology of modern
economic and political sciences. Currently, the following schools are distinguished in the
classification of integration concepts and theories in economic literature: federalism,
functionalism, market-institutional (neoliberalism), structural, dirigisme (neo-Keynesianism),
neofunctionalism, communicative, etc. The school of federalism seeks to reveal the essence of
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European integration. Inspired by dreams of European unification, European federalism is the
most widespread concept of integration. Federalists who criticized the nation state argued that
citizens no longer felt economic and political security within the existing national structures.
Most authors understand federalism as a concept of the state apparatus, which implies
constitutionally formed power and its division into a number of levels. In particular, federalism is
defined as the existence of political systems in which there is a division of power between central
and regional authorities. Spinelli, Albertini, Forsyth are representatives of the idea of
federalism.
In his work, the “existing system of the world” Mitreni put forward the idea that the unifying
principle in the world community should be a function, not a state. Mitreni considered
federalism as a mechanical distribution of actions, he emphasized that the states should be
combined on the basis of general problems (poverty, close cooperation between the states in
solving the problem). Functionalism is based on the continuity of actions, that is, on the fact that
a system of interdependence is created in stages and problems are solved together. The main
principle of functionalism is a clear separation of functional areas, minimizing conflicts between
states through rational regulation. Functional cooperation begins with economic and social plans
and tasks, and not political, such as managing common resources, the fight against
unemployment and healthcare. In functionalism, the main step is the creation of international
organizations to resolve issues of interest between two or more countries. The logic of
integration in the framework of neo -functionalism was first developed and analyzed by Haas.
As a stage in the development of functionalism, the neofunctionalist school developed the theory
of institutionalism and became the basis for the political economy of European integration. The
ideas of Mitrany and Haas found practical expression in the construction of the European
Economic Community. Unlike functionalism, neofunctionalism recognized the need for a
political factor in the integration process. Haas divided politics into “lower” and “higher”. “Low”
politics assumes purely pragmatic goals related to increasing welfare and economic growth.
“High” politics implies a foreign policy strategy, protecting national interests and supporting the
international reputation of the state. Thus, the “lower subjects” of the integration process are
interest groups and political parties, and the “higher” ones are transnational structures.
In addition to the above, there are a number of schools in the theory of economic integration that
differ in their assessments of the integration mechanism. These are the schools of neoliberalism,
corporatism, structuralism, neo-Keynesianism and dirigisme. The first representatives of
neoliberalism - the Swiss economist Ropke and the Frenchman Maurice - understood the
creation of a single market space based on the influence of spontaneous market forces and free
competition on the scale of several countries, regardless of the economic policies of states and
existing national and international legal documents. In their opinion, state intervention in the
sphere of international economic relations leads to such negative phenomena as inflation,
imbalance of international trade. However, the development of international economic
integration, the formation of regional interstate unions with the active participation of states have
shown the inconsistency of the original neoliberal views.
Balassa, an American economist of Hungarian origin, who was among the supporters of the next
stage of neoliberalism, was the first to evaluate integration from two sides, that is, from the side
of the process and the state. Considering integration as a process developing from simple to
complex forms allowed systematization of the stages of the integration process. Balassa
approached the problem of integration from a slightly different direction, that is, he focused on
the extent to which economic integration leads to more active participation of the state in
economic affairs. Much attention was paid to the evolution of integration, which occurs on the
basis of economic and political processes.
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Representatives of structuralism, Swedish economist Myrdal Streeten and Perroux criticized the
idea of complete liberalization of the movement of goods, capital and labor in the
integration space, believing that the free functioning of the market mechanism leads to
imbalances in the development and deployment of production and deepens income inequality.
Economic integration was considered by them as a deep process of structural changes in the
economy of the integrated countries, as a result of which a qualitatively new integrated space, a
more perfect economic organism, is created. In their opinion, the poles of integration
development are large firms, industrial companies and the entire industrial sector.
In the development of the modern world economy, two parallel and interconnected processes are
clearly observed, namely, on the one hand, regional economic integration and, on the other hand,
deepening globalization. In other words, regionalization and globalization are considered the
main process of development of countries of the world. The phenomenon of international
economic integration is presented as the interaction of two economic trends - regionalization and
globalization. The history of world integration dates back to early states and has deep roots. For
many centuries, there has been a process of gradual rapprochement of countries and peoples of
the world. Today, this process has generally accelerated significantly and is applicable to all
industries. Judging by modern international economic relations and legal doctrine, regional
economic integration began in the second half of the 20th century and is currently developing in
almost all countries of the world. Integration, which first appeared in the economic sphere, has
now covered a number of areas and directly led to the development of globalization.
Globalization is a new phase and generalization of relations between the countries of the world
and all societies.
There are more than 150 regional trade and economic unions in the world (most of them were
created in the second half of the 1990s and later), which differ in the level of economic
integration, the number of countries included in this group, the methods of integration and the
areas of joint activities of the participants. At least 2/3 of the total volume of world trade is
accounted for by interregional trade and economic ties (Kheifets, 2022). Globalization and
regional economic integration are concepts that require each other, and at the same time,
according to some scientists, in some respects they are contradictory concepts. But both trends -
globalization and regionalization - successfully coexist in different parts of the planet.
International economic integration is rather regional integration than globalization or economic
globalization. At the moment, regional integration is closely related to the concepts of
internationalization and globalization. All this is aimed at strengthening economic, political,
cultural, military ties between individual countries and societies. Over the past decades, many
scientific studies have been carried out on the theoretical and practical study of the concepts of
regional economic integration and globalization. It is necessary to consider some theoretical
foundations accumulated in the world community in order to reveal the content, nature,
significance and features of the development of international economic integration and
globalization.
Russian scientist Ignatiev (2018) stated that the term "Integration" was first expressed in the
1930s in the works of German scientists Kelsen, Schmitt and Schindler, who considered
integration as an analysis of social relations that bring people (states) into a certain socio-
political situation of those who intend to unite. They saw integration only on a global scale,
without applying it to more specific ones, such as national economies. Since the development of
the international community, especially in the field of economic relations, at that time the
necessary conditions for the implementation of integration ideas had not yet been created. Their
ideas were further developed in the works of the German lawyer and political scientist Carl
Schmitt. According to his theory, the economic development of a country from a certain point
ensures quantitative and qualitative growth and expansion of territory. In this case, annexation or
military invasion is not required, since the formation of a large space occurs on the basis of other
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laws, that is, on the basis of the adoption of uniform religious or socio-cultural forms by several
states or peoples.
Definitions, explanations, classifications and descriptions of international
economic integration, groupings have been developing since the Second World War. This
happened directly against the background of the practice of economic integration of Western
European countries. The definitions that developed during this period are largely based on the
ideas of neoliberalism. American scientist Balassa defines economic integration as a "process
and state". As a process, economic integration consists of measures aimed at eliminating
discrimination between economic units belonging to different nations (states). An example is the
absence of various forms of discrimination between countries.
Based on the current situation, on the one hand, the integrity of the world economy and its
globalization are increasing, which, in turn, is associated with the development of economic ties
between countries, trade liberalization, the creation of modern communication and information
systems, as well as the introduction of uniform technical standards and norms in the world. This
process is especially evident through the activities of transnational corporations (TNCs). On the
other hand, at the regional level, economic convergence and relationships between countries are
deepening, large regional integration structures are being formed, creating relatively independent
centers of the world economy. International economic integration has become a means of rapid
development of the regional economy and increasing the competitiveness of member countries of
integration associations in the world market. International economic integration is a process that
involves the unification of the economies of neighboring countries into a single economic
complex based on stable economic relations between economic entities. One of the important
aspects of this process is the economy, since the main motive for such associations is economic
interests.
In a narrow sense, integration is a process of activating relations and voluntary
rapprochement of states based on general characteristics (political, economic, cultural, etc.).
International economic integration is the highest level of internationalization, at which the
unification of national economies occurs on the basis of deep stable ties and division of labor, as
well as a common space for coordinating a single currency, finance, legal system and economic
policy of countries. States are created.
Various definitions of the concepts of “integration” in the modern scientific literature can
be explained, firstly, by the existence of many models and types of integration processes that
differ in goals and functions, and secondly, there are differences in national interests pursued by
individual states or groups of states. Nevertheless, we can see economic, political goals,
principles, role and significance of regional or international integration in the following:
expansion of economic space and the development of internationalization of economic life;
Internationalization of capital; creation of more favorable conditions for the effective placement
of productive forces; increase the efficiency and competitiveness of production;
structural restructuring of economic systems using the experience of partner countries with a
high level of development; strengthening the "scale" production by deepening specialization;
deepening the regional and international division of labor based on comparative advantages; a
complete or partial association of national economies of different countries;
the formation and improvement of the base of cooperation in the scientific, technical and
production fields;
Improving the level of openness of national economies and trade liberalization; increase the
economic prosperity of member countries by reducing production costs and, as a result, reducing
prices for goods and services;
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elimination of obstacles in the movement of goods, services, resources, capital, labor; the
formation of common markets between different countries;
acceleration of the movement of goods and services by creating a favorable environment in the
transport and logistics direction; acceleration of the rate of economic development; strengthening
mutual understanding and cooperation between countries in political, social, cultural and other
non -economic spheres;
strengthen good neighborly relations between countries in all directions. Avoiding conflicts.
Creation and maintenance of a favorable foreign policy environment; The unification of the
efforts of the participating countries to solve problems in the socio-economic sphere and the
development of foreign economic policy in relation to third countries.
To integrate countries with each other, a number of conditions are necessary. The main
conditions for the creation and effective functioning of integrated associations between countries
are:
Similarity in the proximity of conditions of economic development and the level of maturity of
market relations;
the presence of a common border or at least geographical proximity;
commonality of economic and other problems;
the presence of historical ties between countries and peoples;
political will of the participating countries;
“the effect of demonstrating superiority” for other integration associations;
The success of the integration blocs will encourage other countries to join the organization. The
demonstration effect of the European Union has prompted 13 countries in Central and Eastern
Europe to apply for EU membership. In addition, integration groups have been formed in
different parts of the world directly under the demonstration effect of the European Union. ▪
“Domino effect”. Since integration has led to the orientation of economic relations of the
participating countries towards interregional cooperation, other countries that are not part of the
association face some difficulties in trading with the countries in the group. As a result, they are
also forced to join the integration. Integration studies have been actively conducted since the
middle of the 20th century. Currently, a number of scientific concepts, ideas and concepts
concerning integration relations have been formed abroad and in our country. International
economic integration is the highest point on the path to deepening economic ties. As a result of
the international economy, integrated economic complexes characteristic of this integrated
region will be formed, within the framework of which a single currency, single interstate and
international governing bodies will be introduced, a common infrastructure will be created, and
joint financial funds will be formed. Before a full-fledged integration process occurs, the
interested countries will have to go through a number of stages. The economic model of each
integrated group is the result of a long historical process, during which the interdependence of
the elements that make up the regional economic complex is built, and the mechanism of their
interaction is strengthened here. Therefore, each regional economic system is unique, and it is
ineffective to mechanically obtain its experience. At the same time, a comparative analysis of
existing trade and economic groups shows that there are certain general patterns of development
of regional integration, the sequential passage of a number of special stages and specific features
of each stage, the presence of different levels of intensity, depth and scale of integration. (Mutual
Trade Agreement, Free Trade Zone, Customs Union, Common Market, Single Currency,
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Economic Union).
At present, the Republic of Uzbekistan is increasingly expanding its foreign economic activity
and is actively involved in various regional and international organizations of economic
integration. This means the need for a detailed study of theoretical aspects in this direction.
Literatura/Reference:
1. Address of the Republic of Uzbekistan and President Shavkat Mirziyoyev to the Oliy Majlis.
“Khalk sozi” newspaper, 2018, December 29, No. 271-272 (7229-7230) Sony.
2. Alimov A. (2020). “Globalization and regional economic integration processes. T.: Tashkent
State Institute of Oriental Studies, 96 p.
3. Ignatiev N. (2019). On the concept of economic integration of economic entities. Economic
Journal, No. 3. pp.99-104
4. Ikromov D. (2020). International economic integration. Textbook and workshop. M.: Yurayt,
p.14
5. Ismailova N., & Shagazatov U. (2019). World economy and international economic relations.
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