ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 12 / UIF:8.2 / MODERNSCIENCE.UZ
193
WAYS TO USE THE SUBSTITUTE ECONOMY AND GROWTH
MODEL IN THE INVESTMENT ACTIVITY OF ENTERPRISES
Mamajonova Saida Vakhobjonovna
Gulistan State University senior lecturer,
Ernazarova Gulira'no Khairulla's qizi
GulDU student.
https://dоi.оrg/10.5281/zenodo.10307584
Abstract.
In recent years, the Republic has been developing a real market
economy based on healthy competition as a result of active investment policies,
foreign trade and liberalization of foreign exchange operations. The development of
the industry, which is considered an important branch of the economy, at the level
of international standards, increasing the competitiveness of products in the world
market and expanding its range, is one of the pressing problems of today.
Keywords:
industry, national economy, competitiveness,export, import,
diversification, industrial policy.
ПУТИ ИСПОЛЬЗОВАНИЯ ЗАМЕЩАЮЩЕЙ ЭКОНОМИКИ И
МОДЕЛИ РОСТА В ИНВЕСТИЦИОННОЙ ДЕЯТЕЛЬНОСТИ
ПРЕДПРИЯТИЙ
Аннотация.
В последние годы в республике развивается реальная
рыночная экономика, основанная на здоровой конкуренции в результате
активной инвестиционной политики, внешней торговли и либерализации
валютных операций. Развитие промышленности, считающейся важной
отраслью экономики, на уровне международных стандартов, повышающее
конкурентоспособность продукции на мировом рынке и расширяющее ее
ассортимент, является одной из актуальных задач современности.
Ключевые слова:
промышленность, национальная экономика,
конкурентоспособность, экспорт, импорт, диверсификация, промышленная
политика.
The crisis processes taking place in the world economy also have a huge
negative impact on direct industrial production. The meeting, which was held by the
head of our country, devoted to the discussion of current issues on ensuring the
stability of the national economy, discussed the issues of industrial development,
first of all, it was noted that a holistic chain of deep processing of raw materials and
production of value-added products was not created in some sectors[1]. From the
above, the processes of reforming the sectors and sectors of the economy in our
country today are required to be refined based on the situation in which the world is
composed.
The address of the head of our country to the Supreme Assembly also touched
on this issue, and for the first time it was officially announced that the number of
people living in poverty in our country is 12-15% compared to the total population
ISSN:
2181-3906
2023
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 2 / ISSUE 12 / UIF:8.2 / MODERNSCIENCE.UZ
194
of the country[2]. Taking into account these conditions, it can be noted that in the
current conditions, the combination of types of economic growth based on the
organization of import replacement productions, taking into account the peculiarities
of the sectors of the national economy, is a priority in relation to Uzbekistan's
achievement of sustainable economic growth.
Ensuring the development of the industrial sector as the basis of the well-
established industrial policy in our country, as well as economic growth based on
the organization of import substitution Productions, provides for the development of
all kinds of entrepreneurship in the industrial sector. It is known that it was the
development of this area that gave many countries the basis for ensuring economic
growth based on the organization of import replacement productions during the
transitional period of economic development.
According to the Ministry of Economic Development and poverty reduction
of the Republic of Uzbekistan, the report "competitive industrial productivity index
– 2022" for 2020 was published by the United Nations Industrial Development
Organization [3]. The report ranked Uzbekistan 89th among 154 countries with a
score of 0.017. The fact that the country has risen to 5 points makes it possible to
move to the category of countries with the middle quintile of industrial development.
Based on the index methodology, the results of the report "competitive industrial
productivity index – 2022" are formulated based on statistics from 2020. Uzbekistan
has recorded positive changes in 6 of 8 indicators, while falling in 2 indicators.
Uzbekistan has increased by 1.5 times in its 3-year industrial output from
235.3 trillion soums in 2018 to 368.7 trillion soums in 2020. The largest share in the
production structure (82.0 percent) corresponds to production enterprises, and the
volume of production is 305.9 trillion som.
Also, among the CIS countries, Uzbekistan ranked 4th after Russia, Belarus,
Kazakhstan. The top 5 of the world rankings are Germany (0.416), China (0.369),
Ireland (0.347), Japan (0.325) and Republic of Korea (0.324).
The region cross-section saw the highest growth rate in 2022 for fixed capital
investment in the region of Syrdarya, increasing by 137.6% compared to 2021. This
result can be explained by the development of investments in large projects, such as
the construction of a new power plant with a capacity of 1500 MW and a gas Riston
power plant with a capacity of 220 MW. There was also a high growth rate in
Samarkand region at 129.5% compared to 2021.
The highest in terms of the share of new construction investments was
observed in the Syrdarya region as a result of investments in the construction
projects of a new power plant with a capacity of 1,500 MW, as well as a gas-
porcelain power plant with a capacity of 220 MW, which amounted to 75.2%. For
the creditor, syndicated lending is the most convenient and fast way of large-scale
financing, while for creditors, union mergers into syndicates, in addition to reducing
credit risks, open the possibility of one potential creditor working in partnership with
ISSN:
2181-3906
2023
International scientific journal
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VOLUME 2 / ISSUE 12 / UIF:8.2 / MODERNSCIENCE.UZ
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other creditor's tested clients. In addition, syndicated lending increases small
creditors several times their chances of financing large-scale projects.
In our opinion, a special institute should be formed that evaluates and funds
investment projects that are included in the targeted list of the state investment
program, their high value added to the production of innovative products and fully
meet the criteria for socio-economic efficiency of projects. Today, in the widespread
introduction of non-traditional types of financing of investment projects into our
national economy, it is assumed to apply methods that emdiv Islamic financing
mechanisms.
The Ministry of investment, together with the heads of the established state
and economic management bodies, central bank and commercial banks, the Council
of Ministers of Karakalpakstan, regions and Tashkent City municipalities, pays
special attention to the fact that the share of medium-high and high-tech products in
the processing industry is at least 30 percent in the formation of state investment
programs and
Considering the methodological foundations of economic growth based on the
organization of import substitution productions in the implementation of industrial
policies in our country, we can note the following:
First of all, the consideration of the methodological content of import
substitution and the determination of its forms on this basis makes it possible to
determine its optimal directions for the country at the current stage of economic
reform.
Secondly, at the current stage of the development of the economy of the
Republic of Uzbekistan, partial import substitution is considered acceptable in terms
of the degree of compensation for the volume of imports, while in terms of the use
of production resources - first-class import substitution is appropriate. This is
explained by the stagnation observed earlier at the beginning of economic reforms
and the spiritual and physical obsolescence of production techniques and
technologies. In such conditions, it would not be logical to talk about the
replacement of secondary imports. In the conditions of the Republic of Uzbekistan,
it is desirable that the promotion of import substitution economic growth is due to
the intensive development of Agriculture, and the extensive development of
industry.
Thirdly, an integrated approach to import substitution allows the stimulation
of the reproduction function, which determines the volume and proportions of
extended reproduction.
Fourth, the use of policies to reduce import dependence means an increase in
the standard of living of the population. In general, the complexity of import
substitution is usually characterized by its own social orientation, which provides
for the achievement of economic growth of a new quality, which, in turn, assumes
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2181-3906
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International scientific journal
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VOLUME 2 / ISSUE 12 / UIF:8.2 / MODERNSCIENCE.UZ
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that economic growth is inextricably linked in the living well-being of the population
and that these two processes are coordinated among themselves.
The development of the countries of the world community shows that despite
its abstraction, these models gave significant results and showed their effectiveness,
taking into account the peculiarities of the socio-economic situation. The
development of a market economy in the countries of the world community clearly
demonstrates real models of economic development, which are characterized by
various methods of stimulating socio-economic development.
The study of advanced foreign experience in financing investment activities
is important in the further development of national practice in this regard. The
American model of development is characterized by a low share of state property
and a negligence in the level of state regulation, the support of entrepreneurship by
all methods and means (about 80% of new jobs are created by small businesses), the
presence of a sharp differentiation between the rich and poor segments of the
population, the fact that the
The Japanese model of development is socially oriented, providing a high
level of state intervention in the main sectors of the national economy, the creation
of economic development plans and a slight difference in the level of wages.
Germany's model of economic development is also characterized by its social
orientation and is characterized by a high impact of the state on the economy,
forecasting basic macroeconomic indicators, small differences in the level of wages,
etc.
The Swedish model is a somewhat successful socially oriented model of
economic development, characterized by the reduction of property inequality
through the distribution of national income, concern about the layers of the low-
income population, ensuring active state intervention in the process of price
formation (establishment of Strictly fixed prices) and a high share of the public
sector in the national economy. In addition, the French model of economic
development is of particular interest, it is characterized by a highly regulatory role
of the state (five-year development plans are drawn up), large-scale state
entrepreneurship and active state intervention in the process of capital accumulation.
From the point of view of the successful model, the South Korean model of
economic development is of the greatest interest. South Korea's development model
makes extensive use of socio-economic development planning, has universal control
over the credit-finance sector, and the state regulates the foreign economic sector by
encouraging exports and restricting imports.
Nevertheless, the history of the development of world economy shows that
the implementation of the policy of promoting import substitution can also give its
positive and negative results. For example, in the middle of the 20th century, we can
cite as a clear example the processes of using state policies to replace imports in
Latin America.
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The considered models of the development of different countries indicate that
they may have different priorities, which, in our opinion, implies the achievement of
certain goals, depending on the level of socio-economic development.
Of particular interest among the models of socio-economic development for
the current stage of economic development in our country are models that, together
with reducing the level of dependence on imports, provide for the development of
domestic production. In other words, under the current conditions, a model of import
substitution development is necessary in our country.
The main goal of the programs for organizing and localization of import
substitutes carried out in our country is to establish the production of competitive
modern products intended for export and replacing imports in the Republic of
Uzbekistan, to stimulate the production of domestic products that meet the
requirements of the domestic and foreign markets on the basis of local raw materials
and mineral Resources. At the same time, within the framework of the program, it
is envisaged to widely establish and further strengthen the industrial cooperation
between the domestic sector and inter-sectoral, including small businesses and large
enterprises of the Republic [6].
Conclusions and recommendations.
Taking into account the socio-
economic situation of the Republic of Uzbekistan and the analysis of its specifics,
we will try to present a model of economic growth as a replacement for imports. The
system and complexity of our proposed model of Import substitution economic
growth is that we can achieve a positive result only under the circumstances of the
simultaneous application of each recorded measure:
First of all, when the independence of the state was gained and began to
implement market reforms, a policy of restructuring monetary policy began to be
implemented in our country, and this process continues to this day. Therefore, we
propose to soften the mechanisms of monetary policy in order to encourage
industrial policies based on the organization of import replacement Productions.
Bank loans provided for manufacturing enterprises, by their nature, serve as an
indirect factor in promoting import substitution Productions.
Secondly, measures of selective protectionism within acceptable limits
provide an opportunity to support and encourage the production of certain goods at
the local level, where there is a possibility of production in our country. In our
opinion, the food industry, the pharmaceutical industry, needs state support more
than ever. Therefore, the implementation of selective protectionist measures serves
to turn the current situation in a positive way.
Thirdly, the use of selective protectionism measures in practice and the
resulting results are considered more effective when import quotas are applied to
products for which these measures are being applied. To do this, it is necessary to
determine the volume of domestic demand for these goods, the share of domestic
production in meeting this demand, and compensate for the missing part at the
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International scientific journal
«MODERN SCIENCE АND RESEARCH»
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expense of the reasonable volume of imports . The establishment of import quotas
for products that are planned to replace imports, together with the measures proposed
by US, allows us to support domestic producers, strengthen their position in
domestic markets and bring them to foreign markets in the future.
Fourth, it is necessary to take the necessary measures to restore property as a
result of market changes associated with nationalization and privatization in order
to revive the productive activities of existing enterprises that have ceased their
activities or are not functioning in the prescribed manner. These measures include
the process of modernization of production.
Fifth, the fiscal incentive of import substitution enterprises (industries) in the
form of exemption from Value-Added Tax (VAT)serves to strengthen the
competitive positions of enterprises engaged in the production of import substitution
products in relation to foreign enterprises. By gaining competitive advantages in
price competition, these enterprises will have a number of incentives to expand the
scale of production. It should be noted that these financial mechanisms of promoting
import substitution production are characterized by having a short-and medium-term
description, rather than a long-term one.
Sixth, the use of an adequate customs tariff set based on the level of the raw
material processing stage promotes deep processing of raw materials and the
creation of high value-added products. We consider it necessary to use tariff rates
for both exports and imports in this direction. The essence of this measure is that
when exporting raw materials, it is necessary to reduce customs tariffs as the
application and processing of high customs tariffs deepens.
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