Scientific research results in pandemic conditions (COVID-19)
53
Thus, there appeared a necessity thorough elaboration and didactic
principles, adaptation and refinement i.e. existing in the process of e-
learning.
Moreover, traditional understanding of didactics does not meet the
requirements of information society with rapid development of ICT.
Didactics of digital age is transforming into science, engineering and art of
learning. Didactics is a developing field that expands its theory by combining
research and teaching. Innovative solutions are needed to meet challenge
and respond to the challenges of learning and teaching in digital age with
intensive use of information and communication technologies. One of these
solutions is based on application of engineering methodology to study
teaching and learning processes.
References:
1. COVID-19 Impact on Education // Website en.unesco.org
(https://en.unesco.org/COVID19/educationresponse). Viewed 05.2020.
2. Platonova T.E. Problem of introduction of technologies of digital
economy at present stage of development of economic education in Russia
// Bulletin of Altai Academy of Economics and Law. 2019. No. 5-1. - p.116-
120; URL: https://www.vaael.ru/ru/article/view?id=470 (accessed date:
10.06.2020).
3. Didactic activity. URL: https://www.ngpedia.ru/id472p1.html
(accessed date: 10.06.2020).
Luiza Makhmutkhodjaeva, Сandidate of history science, Associate
Professor Tashkent Branch of Plekhanov Russian University of Economics,
Tashkent, Uzbekistan
Elena Arkhangelskaya, Candidate of legal sciences, Tashkent Branch of
Plekhanov Russian University of Economics, Tashkent, Uzbekistan
PROBLEMS OF IMPROVEMENT OF THE LEGISLATION ON ECONOMIC
SECURITY AND TASKS TO SUPPORT ENTREPRENEURSHIP AND
DEVELOPMENT OF DIGITAL ECONOMY IN THE REPUBLIC OF UZBEKISTAN
L. Makhmutkhodjaeva, E. Arkhangelskaya
Abstract.
In the article there considered problems of improving legal
regulation of economic security, pandemic response, urgent issues of the
development of digital economy, creating legal framework necessary to
regulate the use of modern digital technologies in economic sectors, and
further growth of entrepreneurial activity. Specific tasks have been
Scientific research results in pandemic conditions (COVID-19)
54
identified, the solution of which will create the necessary conditions for the
formation of full value digital environment in the Republic of Uzbekistan,
and it will certainly allow the country to resolve the issue of global
competitiveness as soon as possible, and contribute to strengthening
economic security of the Republic.
Key words. economic security, pandemic response, maintaining
macroeconomic stability, digital entrepreneurship, legal support, modern
information technologies.
The most important factor of the stable development of the country is
its national security. As a complex system, it is considered in the relationship
of its following functional elements: national interests, threats to national
security, protection (ensuring) of national security. On the basis of policy of
national security and in conjunction with it, the state is developing military
doctrine, foreign policy concept, strategy of economics, environmental,
information and other types of security. Economic security occupies a
special place in the structure of national security. This is due to the fact that
all types of security can be implemented only if there is economic
maintenance.
To be sure that there are still not enough researches in science that
would systematically and comprehensively analyze constitutional and legal
aspects of economic security. The problems, related to the legal regulation
and management of state-legal system of maintaining economic security in
Uzbekistan and the issues on bringing to constitutional responsibility for
violations of conditions and requirements of economic security Serious
theoretical understanding is required by, as well as issues. [12].
For further successful social and economic development of the country,
it is necessary to improve legal regulation of economic security, adoption of
the law that consolidate the concept, value, criteria for maintaining
economic security and main directions of state policy in this sphere. It is
necessary to improve legal regulation of special mechanism of legal liability
for violations of the rules and requirements of economic security and related
to ensuring economic security in the country.
In our opinion, the essence of economic security should be legislated,
including as a legal category. We know that economic security is a
combination of factors guaranteeing security and stable condition of
national economy, its independence, which guarantees a high level of
functioning efficiency and further progressive development of society and
the state, which is able to withstand external threats.
The issues of maintaining economic security are especially relevant in
the modern period in the context of COVID-19 coronavirus pandemic.
Worldwide spread of deadly - dangerous new type of coronavirus in all
Scientific research results in pandemic conditions (COVID-19)
55
respects has become emergency of international importance. Many experts
view this pandemic as the largest social and economic crisis since World
War II. It should be noted that not a single state in the world was fully
prepared for either the epidemiological or economic threats and challenges
of COVID-19. Uzbekistan is no exception.
According to World Bank experts’ opinion the spread of coronavirus
COVID-19 is a considerable impact to the Republic of Uzbekistan and
development of market economic relations. They predict that in 2020
economic growth of the country will significantly reduce as a result of
considerable shrinkage in foreign trade and large-scale domestic economic
shocks. In 2020, an increase in the GDP growth rate in Uzbekistan is
expected to reach 1.5 %. In 2021, the growth rate will be 6.5 %, reflecting
the recovery of exports and domestic demand [3].
On March 15
th
from the moment of determination of the first case of
infection there taken strong measures in the republic. There have been
considered and implemented integrated strategy that includes a system of
long-term decisions of a medical, economic and social nature by the
President of the Republic of Uzbekistan.
On March 19, 2020, first package of measures was adopted in the
republic which aimed at maintaining macroeconomic stability, effective
social support to the population during the period of countering the spread
of coronavirus infection and other global risks, and preventing a sharp
decline in the country's incomes.
The development of special Anti-Crisis Fund with monetary funds in the
amount of 10 trillion soums is of decisive importance among taken measures
the functions of which are [4]:
a) financing arrangements in fighting against the spread of coronavirus
infection;
b) supporting entrepreneurship and employment;
c) expanding social support of population;
d) maintaining sustainable operation of sectors of economy.
In accordance with the Decree of the President of the Republic of
Uzbekistan “On additional measures to support the population and
businesses during the coronavirus pandemic” adopted on April 27, 2020, in
Uzbekistan there implemented additional eases for entrepreneurs, in
particular micro-firms, small enterprises and individual entrepreneurs,
whose activities were negatively affected consequences of the pandemic are
granted an interest-free tax until December 31 (earlier - until October 1)
”[5].
In 2020, the amount of material assistance that is not subject to personal
income tax paid to an employee will increase from 4.22 to 7.5 times the
minimum wage.
Scientific research results in pandemic conditions (COVID-19)
56
Individuals are allocated an interest-free rescheduling of payments of
income tax received from renting residential premises to individuals and
non-residential premises to entrepreneurs who suspended their activities
during the spread of the coronavirus pandemic. The sum of allocated
rescheduling of payments of income tax on personal income tax should be
paid in equal share by April, 1, 2021. Total amount of tax incentives provided
to businesses under the adopted Decrees of the President of the Republic of
Uzbekistan is approximately 3.7 trillion soums, including tax incentives for
personal income tax, fixed tax for individual entrepreneurs, and social tax -
about 541 billion soums.
The application of higher rates for property tax and land tax as well as
other punitive damages has been canceled for more than 20 thousand
business entities. As a result of the implementation of this measure total
amount of pReferences:for business will be about 1.8 trillion soums.
Entrepreneurs are presented with tax deferrals in the amount of 1.3 trillion
soums, which will eventually come to the budget in full (in 2021). They have
been returned the sum of VAT previously paid in the amount of 414 billion
soums ahead of schedule, which could be returned after July 1, as previously
planned”[6].
As a result of decisive measures taken to fight against the coronavirus
infection on April 20, in Uzbekistan there taken decisions to gradually easing
of quarantine restrictions in the areas, regions and cities where no cases of
coronavirus detection or improvement in the epidemiological situation. it
was provided to allow all types of construction work, subject to the full
observance of quarantine rules.
One of the leading sectors of economy in the republic is the construction
sector, which employs 1,325 thousand people. Therefore, this industry is
given priority attention during the recovery of economic activity in the
country. Additional 3.6 trillion soums were sent to the industry in order to
prevent decline in construction volumes during the quarantine period.
Construction industry is closely linked to the building materials market.
Given this order the Joint-Stock Company “Uzstroymaterialy” was tasked to
increase production to 10 trillion soums in the first half of 2020 and up to
22 trillion soums until the end of this year as well.
The issues of developing textile industry and softening the impact of the
coronavirus pandemic on other sectors of economy have actively been
resolving in the Republic of Uzbekistan.
In May, state leader adopted additional measures to support business,
including [7]:
- to reduce social tax rate for small businesses and farms from 12% to
1% between May and July of the current year. As a result of the
implementation of this measure, more than 260 thousand enterprises and
Scientific research results in pandemic conditions (COVID-19)
57
farms will be able to save about 650 billion soums and use them as working
capital;
• to release small businesses and individual entrepreneurs from
payments of land tax and property tax over the next three months (June,
July, August). As a result, more than 50 thousand entrepreneurs will receive
300 billion soums;
• to allow entrepreneurs to pay customs duties with a delay of up to 120
days, which will leave at their disposal about 540 billion soums;
• to allocate funds for the further support of low-income families from
the budget in the amount of 200 billion soums which will cover 70,000
families with benefits (10% more than before taking actions);
- to cover interest payments on investment loans of entrepreneurs by
the state at a rate of up to 26% (previously - only at rates up to 22%);
• to increase working capital replenishment from 5 to 10% from the
amount of compensation for loans in the sum of up to 500 billion soums
(previously up to 10 billion soums);
• to allocate additional 2 trillion soums or about 197.3 million US dollars
for further support of business and population.
As a consequence of taken measures about 10 thousand out of 14
thousand industrial enterprises have got a profit that hold up activities for
the period of quarantine with observance of precautionary measures (up to
178 thousand employees have returned to work).
Of course, taken actions to support the sectors of economy, small and
private business will serve to recover economy, strengthen economic
security of the country. However, solving the issues of further economic
growth in Uzbekistan is impossible without further innovative
development. It's not a coincidence, that when the President of the Republic
of Uzbekistan declared 2020 “The Year of the Development of Science,
Education and Digital Economy” in Uzbekistan.
There is no doubt, that the use of modern information technologies in
the sectors of economy, formation of a full-fledged digital environment,
“digitalization” of economy of the Republic of Uzbekistan will allow the
country to quickly resolve the issues of global competitiveness and bring the
Republic to new frontiers.
In December 2018, in the message of the President of the Republic of
Uzbekistan Sh. M. Mirziyoyev to Oliy Majlis there noted the need to start
“developing National Concept of Digital Economy in 2019, which provides
for updating all spheres of economy based on digital technologies, and on
this basis to implement the Program “Digital Uzbekistan-2030”. The main
objective of the Program is to create legal, technical, organizational and
financial conditions for the development of digital economy in the country
Scientific research results in pandemic conditions (COVID-19)
58
and, in essence, to provide a digital space for all spheres of vital functions of
the state.
The message of the President of the Republic of Uzbekistan Sh. M.
Mirziyoyev to the Parliament of the Republic of Uzbekistan on January 24,
2020 marked important tasks, such as “Completing and implementing the
development of the “Digital Uzbekistan-2030” program in two months,
which provides for updating all sectors of economy based on digital
technologies, increasing the share of digital economy in GDP by at least 30%,
thereby reducing corruption, and there should occur radical change in the
digital economy, implementation of the “1 million programmers” project
with our foreign partners to further accelerate the development of science
and digital economy and train highly qualified specialists in this field ” [8].
Formation and development of digital technologies, digitalization of
economy of Uzbekistan is one of the priority directions of the state policy of
the Republic and most important condition for economic security of the
country. In this direction, there have been taken necessary measures to
introduce an electronic document management system, electronic
payments, develop electronic commerce and improve regulatory
framework.
In order to implement the decree of the President of the Republic of
Uzbekistan from February 19, 2018 “On measures to further improve the
sphere of information technology and communications”, The Strategy of
Actions on Further Development of Uzbekistan for 2017-2021 are defined
as the issues of widespread and effective execution of digital economy and
information security in the country [9]. The decree of the President of the
Republic of Uzbekistan from July 3, 2018 “On measures for the development
of the digital economy in the Republic of Uzbekistan”, the Decree of the
President of the Republic of Uzbekistan from December 13, 2018 “On
additional measures the introduction of the digital economy, e-government,
and information systems in the public administration of the Republic of
Uzbekistan” and other regulatory legal acts served as the legal basis for the
assigned tasks.
Main directions of structural reforms of the Republic of Uzbekistan for
the period 2019-2021 provides for the development of a set of measures to
increase the efficiency of fiscal policy, introduction of alternative financing
mechanisms for startups and projects of business entities (for example,
crowdfunding); creation of a regulatory framework for the development of
modern financial technologies (“Fin-tech”); measures to improve the
business environment for electronic digital financial services; liberalization
of trade policy and exports, development of measures to reform the aviation
sector, creation of conditions for the accelerated development of e-
commerce, venture financing of technology startups; introduction of
Scientific research results in pandemic conditions (COVID-19)
59
blockchain, the Internet of things (IoT) and other modern Internet
technologies in the sectors of economy and everyday life; development of
sets of measures to further improve the business environment,
improvement operation of economic sectors; strengthening social
protection and services to citizens; improving the efficiency of
environmental use.
Measures to rapid formation and development of digital economy are
provided for in the Resolution of the President of the Republic of Uzbekistan
“On measures for the widespread adoption of the digital economy and e-
government” adopted on April 28 this year. This decree provides for
accelerated formation of digital economy with twofold increase in its share
in the country's gross domestic product by 2023. There fixed regulations on
the development of the e-government system. It is intended to increase the
share of electronic public services to 60% by 2022 [10].
In the Republic, there will be taken the measures to introduce a complex
of information systems in production management, further automation of
technological processes for widespread use of software products in financial
and economic activities. The decree regulates the provision of the most
complete modernization of digital infrastructure of the country and
availability of modern telecommunication services in the regions, provides
for the connection in 2020-2021 of all healthcare institutions, schools,
preschool education organizations, villages and mahallas to the high-speed
Internet and improving the quality of communication services.
Digital technologies will be introduced at all stages of education system.
To increase the level of digital knowledge by 2022, digital learning centers
will be created in all regions of the republic as part of the “Five Further
Initiatives” project. [10].
In the Republic of Uzbekistan there implemented measures aimed at
incitement of entrepreneurial activity, improvement of the flow of
investment and creating new job places.
In the country, large-scale digital infrastructure projects are being
implemented in stages, including the development of electronic services,
expansion of electronic procurement system, and involvement of citizens in
the process of making socially significant decisions. Ecosystem is gradually
being created for innovative startups in the sphere of information
technology. Formation of IT-Park, community center for startups in
Uzbekistan will serve as a kind of launching pad for the development of
economy digitalization. An important condition for the formation of digital
economy is the conception of sufficient legal framework necessary to
regulate the process of creating and applying digital technologies in various
sectors of economy. Legal support of the processes of informatization,
formation and implementation of single scientific and technical policy in the
Scientific research results in pandemic conditions (COVID-19)
60
sphere requires serious updating. Current legislative acts of the Republic of
Uzbekistan determine economic, legal and organizational basis for
functioning of information complex. First of all, we can single out the laws of
the Republic of Uzbekistan “On telecommunications” and “On
informatization”, “On electronic digital signature” and etc. In addition, the
most important tasks for the development and implementation of
information and communication technologies assigned in the Decree of the
President of the Republic of Uzbekistan on May 30 2002 “On the further
development of computerization and implementation of information and
communication technologies”.
It should be noted that at present in order to solve assigned tasks on
formation and expansion of the digital economy there required
development and adoption of the law on digital technologies in economy, it
is necessary to secure concepts of digitalization, digital sector and other key
provisions related to the development and application of new digital
technology in the legal sphere. It is crucial to create a legal framework for
the introduction of digital technologies, including the “blockchain”, taking
into account best practices of foreign countries. Corresponding change and
additions to the current legislation should ensure introduction into civil
circulation of such concepts and technologies as: smart contracts, public
electronic consensus, cryptocurrency and others.
As many authors correctly noted, the legal regulation of digital economy
in all countries encounters inability to structure a digital ecosystem. It is
impossible to influence this mechanism through a standard set of legislative
reforms [12, p.334]. There is no doubt that the pace of digitalization in
different sectors of economy will be different, therefore, change in the
legislative framework should be implemented gradually. Legal status of the
state, which is not only the main regulator in the sphere of new digital
relations, but also the entity responsible for protecting the rights and
legitimate interests of market participants should be legislatively
consolidated.
Thus, creation of conditions for the introduction and development of
digital economy in Uzbekistan is associated with the solution of the
following important tasks:
1. Development and application in the sphere of economics of digital
platforms and technologies of the latest generation.
2. Development of information system based on high-speed Internet.
3. Formation of the necessary digital infrastructure for public
administration, economy, business, and social sphere on the basis of
requirements of economic security.
4. Adoption of measures to control the maintenance of fair competition
in the digital economy.
Scientific research results in pandemic conditions (COVID-19)
61
5. Creation of the necessary infrastructure for the circulation of
cryptocurrency assets, including smart contracts, blockchain technologies
for further development of investment and entrepreneurial activity.
6. Maintenance of legal regulation and creating the necessary legal
framework for the introduction of digital technologies in economy of
Uzbekistan.
7. Provision of the protection of the rights and legitimate interests of
business entities, all participants in digital relationships, defining and
differentiation of their responsibilities.
8. Training qualified personnel in the development and use of digital
technologies, including blockchain in various sectors of economy.
9. Organization of cooperation with international and foreign
enterprises and organizations in the sphere of activity on cryptocurrency
assets, blockchain technology and other digital technologies.
10. Creation of conditions for joint implementation of projects in the
digital economy, introduction of artificial intelligence technology, the use of
capabilities of supercomputers and other areas.
11. Supporting the interaction of government agencies and private
business in the implementation of technologies for further development of
digital economy.
Solving above mentioned relevant tasks of creating digital economy,
which is designed to increase the innovative activity of economic entities,
technological modernization will ultimately contribute to the integration of
economy of Uzbekistan into global economic space, strengthen the country's
economic security and increase welfare of population.
References:
1. Grigoryev I.B. On the question of the relationship between doctrinal
approaches and legislator's approaches to defining the content of the term
"security" (constitutional and legal aspect) // Bulletin of the Moscow
University of the Ministry of internal Affairs of Russia. 2015. № 11. p. 51-62.
2. Balog М.М. Analysis of the categories "economic security" and
"economic security of the region" / / Topical issues of national economy
development: Materials of the VI International correspondence scientific
and practical conference. 2017. p. 435-445.
3. Europe and Central Asia Economic Update, Spring 2020: Fighting
COVID-
https://openknowledge.worldbank.org/handle/10986/33476
4. Decree of the President of the Republic of Uzbekistan "On priority
measures to mitigate the negative impact on the economy of the coronavirus
pandemic and global crisis phenomena» from 19.03.2020 № УП-5969.
Scientific research results in pandemic conditions (COVID-19)
62
5. Decree of the President of the Republic of Uzbekistan "on additional
measures to support the population and businesses during the coronavirus
pandemic» from 27.04.2020. №УП-5986. lex.uz › docs
6. New measures to support the population and business.
http://www.uzdaily.uz/ru/post/51393
7. The President announced new measures to support businesses and
https://www.gazeta.uz/ru/2020/05/13/support/
8. Message of the President of the Republic of Uzbekistan Shavkat
Mirziyoyev
to
the
Oliy
Majlis
on
January
24,
2020.
https://uza.uz/ru/politics/poslanie-prezidenta-respubliki-uzbekistan-
shavkata-mirziyeev-25-01-2020
9. Decree of the President "on the Strategy of actions in five priority
areas of development of the Republic of Uzbekistan for 2017-2021". №УП-
4947 от 07.02.2017.
10. Decree of the President of the Republic of Uzbekistan "on measures
for the wide implementation of the digital economy and e-government».
№ПП-4699 от 28.04.2020.
11. Decree of the President of the Republic of Uzbekistan "on measures
to develop the digital economy in the Republic of Uzbekistan». № ПП-3832
от 3 июля 2018.
12. Plotnikov А.V. Problems of legal regulation of the digital economy.
Moscow
economic
journal
№5.
-
2018.
-
с.330-335.
https://cyberleninka.ru/article/n/problemy-pravovogo-regulirovaniya-
tsifrovoi-ekonomiki
Ulugbek Aliyev, Ph.D. (Econ.), Associate professor, Tashkent Branch of
Plekhanov Russian University of Economics, Uzbekistan.
INTERNATIONAL PRACTICE OF ATTRACTING FINANCIAL RESOURCES
THROUGH AN INITIAL PUBLIC OFFERING OF SECURITIES
U. Aliyev
Abstract. As international practice has shown over the past ten years, at
the present stage of development, one of the promising areas of attracting
foreign financial resources and, in particular, direct foreign investment is
the initial public offering of securities on international financial markets.
Keywords: Foreign direct investment, financial and securities markets,
investment policies, initial public offering, financial innovations
