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THE ROLE OF INDUSTRIAL ENTERPRISES OF THE UZBEKISTAN
SSR IN ECONOMIC LIFE
Choriyev Fazliddin Nasriddinovich
Researcher, National University of Uzbekistan
https://doi.org/10.5281/zenodo.15694756
Abstract:
This article highlights the role and significance of industrial
enterprises of the Uzbek SSR in economic life.
Keywords:
non-consumable, large state industrial enterprise, cheap energy
resources, self-sufficiency, chemical industry, textile industry, building
materials, technological modernization.
Industrial enterprises of the Uzbek SSR played a central role in the
development of the republic's economy during the Soviet era. While Uzbekistan
was historically an agrarian region, the industrialization policy of the Soviet
Union turned it into one of the most important industrial centers of Central Asia.
Industrial enterprises became the driving force of the economic growth of the
Uzbek SSR. The main sectors include:
First, the chemical industry (especially fertilizers and plastics);
Second, textile and cotton processing;
Third, metallurgy and machine-building production;
Fourth, the food and building materials industry.
These sectors helped diversify the economy and reduce dependence on
the export of agricultural raw materials. The rapid development of industry
created hundreds of thousands of jobs, helped reduce unemployment and
increase labor productivity. Many enterprises offered technical education and
vocational training, which contributed to the formation of qualified personnel.
Chemical plants produced fertilizers and pesticides to increase cotton and wheat
yields. Machine-building plants built tractors, irrigation systems, and harvesting
equipment. Food processing plants improved the storage and distribution of
agricultural products. Large industrial zones led to the growth of urban centers
such as Tashkent, Chirchik, Fergana, Angren, and Navoi.
In the period 1950–1954, industrial development in the Uzbek SSR both
grew rapidly and faced serious problems. Although new plants and factories
were built in various regions, including in the chemical, textile, and food
industries, many enterprises had difficulty maintaining stable product quality.
“In 1950–1954, products worth 1.422 million rubles of products manufactured
by district and city industrial enterprises were found to be of poor quality or
completely unfit for consumption” . Outdated equipment and lack of proper
maintenance led to production defects. Inadequate training of workers and
SOLUTION OF SOCIAL PROBLEMS IN
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engineers reduced the ability to control quality standards. Pressure to meet
central quotas often forced managers to ignore deficiencies in order to meet
planned production targets. Insufficient or low-grade raw materials further
affected the quality of the final product. Food processing, where products did
not meet hygiene standards. Chemical products, including fertilizers or
household chemicals, did not meet safety or efficiency criteria. Light industry,
where textiles and consumer goods were rejected due to defects or non-
compliance with technical specifications.
Despite these failures, the state took a number of measures to address the
problem:
First, quality control inspections were strengthened;
Second, managers of failing enterprises were held accountable and
sometimes punished;
Third, training programs were developed to improve the technical skills of
workers.
The findings from this period reflect a broader pattern in Soviet industrial
planning—rapid expansion often came at the cost of durability, reliability, and
consumer safety. In the long run, these quality problems led to inefficiency and
waste, weakening the economic potential of the industrial sector. “Over 125
large state-owned industrial enterprises were launched in Uzbekistan between
1961 and 1970” .
Chemical industry – includes fertilizer plants, chemical processing plants,
and laboratories.
Textile industry – to support the processing of cotton, Uzbekistan's most
important crop.
Building materials – such as cement and brick factories, to support urban
growth.
Food processing – includes canning and meat factories to ensure a stable
food supply.
Metallurgy and mechanical engineering – factories that produce tools,
equipment, and metal products.
This industrial expansion had a major impact in the following areas:
First, increased employment for thousands of skilled and unskilled
workers;
Second, urbanization, as rural residents migrated to cities for industrial
jobs;
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Third, technological modernization, the introduction of Soviet-designed
equipment and production lines;
Fourth, the extensive integration of the Uzbek economy into the All-Union
supply and production sectors.
These developments paved the way for further cooperation in industry
and agriculture. Many new chemical plants, such as those producing fertilizers
and pesticides, supported large-scale farming operations, especially cotton
cultivation. Despite these achievements, problems with product quality,
infrastructure, and excessive centralization of decision-making remained.
Nevertheless, the 1960s were a turning point in Uzbekistan's transition from a
predominantly agrarian economy to a growing industrial base. “The 24th
Congress of the CPSU (March 30 - April 9, 1971) paid great attention to the issue
of further improving the location of industry and improving regional economic
ties. It emphasized the need to locate new energy-intensive industrial
enterprises mainly in these regions, given the availability of relatively cheap
energy resources in Siberia and Kazakhstan, as well as in Central Asia” . The
Congress emphasized that in order to use national resources more efficiently,
new energy-intensive industries such as metallurgy, chemical industry, and
heavy machinery should be strategically located in regions with abundant and
cheap energy resources.
In particular, the following were proposed:
First, Siberia, Kazakhstan, and Central Asia should become priority areas
for industrial expansion;
Second, these regions offered relatively cheap electricity due to the
development of hydroelectric power plants, coal, and natural gas resources;
Third, the location of industrial enterprises in these regions would help
reduce transportation costs, balance regional development, and make better use
of local labor and raw materials;
For Uzbekistan and other Central Asian republics, this policy created the
following opportunities:
First, to expand the chemical industry, especially the production of
fertilizers and plastics;
Second, to develop metallurgical plants using local minerals and imported
raw materials;
Third, to strengthen the integration of agro-industrial complexes with
chemical plants supporting agricultural products;
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Fourth, to improve economic ties with neighboring republics through
regional specialization and coordinated planning.
This strategic shift helped to transform the economic landscape of the
Uzbek SSR by deepening its industrial base and integrating it more closely into
the Soviet Union's all-Union production network. “In 1988, only 320 (25.3%) of
the 1,267 large industrial enterprises in Uzbekistan were fully self-sufficient and
self-sufficient” . This meant that these 320 enterprises were able to finance their
activities without relying on government subsidies. They operated
independently, covering their costs with their revenues, and were more
responsive to supply and demand. Their operations more closely followed the
cost accounting principles put forward during the last Soviet economic reforms.
The remaining 947 enterprises (74.7%) were largely dependent on:
First, state budget allocations or subsidies;
Second, centralized pricing systems that often ignored real production
costs;
Third, planned production quotas rather than profitability or efficiency;
Fourth, limited financial or managerial autonomy.
This imbalance reflected the inefficiency of the broader Soviet economic
model at the time. It showed that most industrial enterprises were not yet ready
to operate in a market-oriented or semi-autonomous environment. The lack of
self-sufficiency hindered economic flexibility and innovation. Supporting
harmful industries was a huge burden on the state budget. This indicated the
need for structural reforms in the field of enterprise management, production
incentives, and financial responsibility.
In short, industrial enterprises were the backbone of the economic life of
the Uzbek SSR. They transformed the region from an agricultural economy into
an industrially developed republic. Despite systemic difficulties, they
contributed to economic growth, modernization, employment, and
infrastructure development - shaping the economy of Uzbekistan for decades to
come.
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