World scientific research journal
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INNOVATION ANALYSIS OF SOCIO-ECONOMIC
DEVELOPMENT OF DEHKAN FARMS’ ACTIVITIES
Ergashov Yashnarbek Istamovich
Karshi International University
Teacher of the Department of “Economics and Engineering”,
Abstract.
Currently, in many developed countries, the digital economy and the
factors of their development have a significant impact, and the digital economy plays
an important role in the life of society. The theoretical aspects of the systematic
approach to the assessment of the development of the agricultural economy through
the digital economy are highlighted.
Key words:
Digital economy, agrarian sector, agrarian sector, agriculture,
nurseries, animal husbandry, natural climate, vegetable growing, horticulture, grain
products, fruit and vegetable growing and viticulture.
Introduction.
In his address to the Senate and Legislative Chamber of the Oliy
Majlis, President Shavkat Mirziyoyev declared “2020 – the Year of Science,
Enlightenment and Digital Economy”. After that, many questions began to arise
among citizens about the term “digital economy”. The state has gone through a
difficult path from describing them as separate elements of the modernization process
to considering them as interconnected links of a complex system. At the same time,
it has become deeply understood that this system is not a closed system limited to
science, universities and research centers as the main source of modernization, but a
system that is integrated into economic processes taking place within the framework
of nation-states, in the networks of economic enterprises and in large corporations and
small companies.
The main task today is to formulate strategic goals for the development of the
digital economy system.
The digital economy is a system of economic, social and cultural relations based
on the use of digital technologies. Sometimes it is also referred to as the Internet
economy, the new economy or the web economy. In 1995, the American programmer
Nicholas Negroponte introduced the term “digital economy”. Currently, this term is
used by politicians, economists, journalists, entrepreneurs around the world - almost
everyone. In 2016, the World Bank published its first report on the state of the digital
economy in the world (“Digital Dividends”). Basically, e-commerce, online banking,
electronic payments, online advertising, and, at the same time, online games are
considered the main elements of the development of the digital economy. Thanks to
the development and application of information technologies, many conveniences are
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emerging in our daily lives. Let's say we want to eat, but we don't want to cook it, it's
not a problem, we can order any food we want online through an online food delivery
service. Or we need to transfer money to a friend, there is no need to go to a bank or
financial institution, we can transfer money through mobile banking. We can perform
many such services online, via smartphone or computer.
Interest in the digital economy has grown significantly due to significant changes
in society and the economy. Modern technologies and platforms have helped
businesses and individuals reduce costs by minimizing personal communication with
customers, partners and government agencies, and have also made it possible to
establish mutual communication faster and easier. As a result, a digital or electronic
economy based on network resources has emerged. The main source of growth in the
digital segment of the economy is the growth of the transactional sector. In developed
countries, this indicator accounts for more than 70 percent of GDP, combining public
administration, consulting and information services, finance, wholesale and retail
trade, as well as the service sector (municipal, personal and social).
As a result of studying the world experience, it became clear that in countries
with a developed digital economy, the state (government) determines the rules of the
market "game" for all participants in the game, and the most important task of the
state is to create the same, equal and opportunity conditions for the participants in the
game. That is, whether there is a large company or a small business in the market,
they are considered equal. They are given the same opportunities. The state ensures
that the rules are followed and, ultimately, the ordinary consumer receives a high-
quality, modern service or product. Therefore, for the development of the digital
economy, the state must create equal conditions for everyone, market rules, laws,
contracts must be as transparent as possible, and laws must be based on market
demand (i.e., be able to determine development trends in the market in advance and
adopt the necessary regulatory documents) and provide freedom for the participants
in the game.
The digital economy in Uzbekistan is developing several times slower than the
potential of Uzbekistan. That is, there is an opportunity, there are the necessary
resources, but development is much slower. The reason for this can be attributed to a
number of obstacles to the development of the digital economy in Uzbekistan.
- monopoly in many areas;
- low internet speed and poor quality;
- outdated legislation in the field of information technologies;
- extremely low computer literacy among citizens;
- lack of transparency of legislation;
- lack of information technology specialists or their departure to other countries;
- low information culture, information hygiene;
- poor information technology security;
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- lack of specialists who understand the field in management bodies or (in some
cases) their complete absence;
The annual growth of the digital economy in the country's GDP by about 20
percent (in developed countries this figure is about 7 percent) is considered an
indicator of its importance. In 2010, the Boston Consulting Group estimated the scale
of digitalization at $ 2.3 trillion (4.1 percent of GDP) for a group of 20 countries. If
this trend continues, in 10-15 years the share of such an economy in world GDP will
approach 30-40 percent.
There are many innovations in the replacement of one socio-economic system
with another, as a result of the transition to the modernization of a multi-sector
economy, the modernization process covers all spheres of society's life, is not limited
to the introduction of modernization only in the production and social spheres, and
the modernization process ultimately eliminates crises in production and ensures
socio-economic development.
The main measures aimed at developing the economy of our republic are also
being used to achieve production efficiency of enterprises by developing this
direction. The first task for enterprises in the production of finished products is the
effective use of labor resources, material and technical means and financial means,
ensuring the superiority of price over profit, and increasing production profitability.
Providing the population with food products, as well as expanding the scope of
exports of agricultural products, is achieved by solving problems in production,
processing, storage and services. At the same time, state protection is also necessary
in providing the domestic market with food at the present time, as well as creating
opportunities through the state setting a variable price for agricultural products and
their processing, land and tax laws, and providing incentives for investment.
For the rapid and comprehensive development of agriculture, it is necessary to
apply the modernization of production. For this, it is necessary to fully utilize the
potential of land and labor resources, raise the technologies of planting and caring for
agricultural crops to a qualitatively new level, and strengthen the material and
technical base of the industry to the required level.
The adaptation of Uzbekistan's modernization system to the new system of
managing economic enterprises is manifested, first of all, in the transformation of the
modernization activities of the business sector, that is, in the transition from the
"technological push" model to the model of determining demand for new products.
International scientific, technical and technical cooperation in various sectors of
the Uzbek economy plays an important role in increasing the competitiveness of
enterprises, contributing to the entry of new technologies into domestic markets.
Without intensive competition in the domestic market, commodity producers
cannot enter foreign markets. This requires the introduction of innovations, in
particular, new technologies, increasing labor productivity and the transition to the
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development of the economic sector in a modernized manner. In our opinion, to fill
this gap, it is necessary to solve three problems:
– creation and improvement of an information service that provides agricultural
commodity producers at the republican, regional and district levels with information
on the market situation, the resource market, demand for agricultural
economic goods, the cultivation of seeds of competitive product varieties,
pedigree cattle, technology, vehicles, and other information related to the domestic
and foreign markets;
– work on harmonizing Uzbek standards with world standards, improving
standardization;
– improving production technology, transition to narrow specialization in
agricultural production.
During the years of independence, special attention was paid to the creation and
improvement of the regulatory and legal framework for the gradual introduction of
market relations in agriculture. The Land Code of the Republic of Uzbekistan, the
laws “On Farming”, “On Peasant Farming”, “On Guarantees of Freedom of
Entrepreneurship” and other regulatory and legal documents have opened the door to
new opportunities for the formation of the legal framework for the activities of
farmers and peasant farms and the implementation of entrepreneurial activities in the
countryside.
The development of various forms of ownership and management in all sectors
of the industry creates the basis for a high share of economic entities operating in the
non-state sector in the structure of product production. As a result, in recent years
their share in the gross agricultural product has reached almost 100 percent.
Only love for the land, increasing its fertility, and, first of all, constant attention
to the peasant and farmer, caring for their interests - this is the path we have chosen
to develop the countryside and agricultural production.
The role of state management bodies in regulating the economic mechanism in
the agro-industrial complex is growing through direct economic incentives and
material incentives. It is worth noting that the regulation of state management, in our
opinion, should consist of certain tasks. They are:
- rational use of budget, credit resources and state assistance to farms;
- implementation of measures aimed at maintaining the balance of prices
between agriculture and other sectors;
- creation of a food fund for the republic and its regions, organization of a
marketing service for agricultural producers;
- effective investment, innovation and institutional policy. Currently, there are a
number of shortcomings in the management of the agro-industrial complex, in
particular:
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- lack of state participation in the regulation of agro-industrial production,
especially in influencing inter-sectoral relations and equivalent exchange between
agriculture and industry;
- the fact that regional characteristics and the existing structure of agricultural
production are not taken into account when implementing reforms;
- the slow implementation of measures aimed at social factors, in particular,
employment of able-bodied workers, in the reorganization of the agricultural sector.
It is known that early cultivation of products with high marketability leads to
higher income from them. This is especially important for peasant farms located in
the southern regions. For peasant farms, not only early cultivation of products, but
also the sale of early cultivated products requires significant costs. Due to the lack of
funds for the sale of early cultivated products, up to 50 percent of the cultivated
products are sold to intermediaries. Currently, the following problems exist in peasant
farms:
- the real demand of peasant farms for mineral fertilizers and plant protection
chemicals, fuels and lubricants and technical equipment is not fully met and is not
well studied;
- despite the leading position of peasant farms in livestock breeding, the level of
productivity is not very high;
- an effective system of purchasing meat and milk with processing enterprises
has not been established;
- Although farmers' farms are achieving a certain level of production in line with
market demand, the sale and processing of products is not well established.
Conclusions and suggestions
A buyer needs shoes. If he goes to the market, chooses them himself and buys
them for cash, this is a traditional economy. Choosing a product he likes through a
trading bot on Telegram, paying the owner of the product through an electronic
payment system, and receiving the product through a delivery service is called a
digital economy. This is an explanation of the issue using the simplest household
example. In fact, we are all already in the digital economy, using its conveniences.
For example, our salaries are deposited on plastic cards, we pay for utilities,
telephone, Internet and other products and services through electronic payments, we
file tax returns electronically, transfer money from card to card, order food to the
house, etc.
If the above problems are solved step by step, systematically, based on world
experience, Uzbekistan can easily become one of the countries with a developed
digital economy.
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