The Importance of Industrial Development in The Regions and The Main Directions for Their Effective Use

Аннотация

This article highlights the economic trends and factors influencing the development of industry in the Andijan region of the Republic of Uzbekistan, based on the significance of industrial production and regional specialization. The development of the region has been studied and analyzed through the lens of its industrial sectors. Development directions have been proposed based on the region’s revenues. Keywords: Regional industry, industrial production, regional industrial specialization, internal capabilities and opportunities. competitive in the market. Important focus areas Introduction: Since the early years of independence, include increasing local production, developing Uzbekistan has pursued a targeted territorial policy and interregional industrial cooperation, boosting implemented profound institutional reforms. employment by leveraging internal regional resources, Currently, comprehensive regional development and improving material well-being based on this measures are being undertaken, with targeted regional foundation. These are becoming increasingly significant programs in progress. in regional economic policy. As a logical continuation of these territorial reforms, in Decree No. PF-60 of January 28, 2022, outlines January 2017, the Cabinet of Ministers of the Republic objectives from 21 to 36 under the third direction of the of Uzbekistan adopted a Resolution "On the approval New Development Strategy of Uzbekistan for 2022– of the regulation on the information-analytical 2026 titled “Ensuring Accelerated Development and department for the comprehensive socio-economic High Growth Rates of the National Economy.” The development of territories." Furthermore, in February strategy sets the following goals for industry: 2017, Presidential Decree No. PF-4947 introduced the “Action Strategy for Five Priority Areas of Development • Goal 22: Increase industrial production volume in 2017–2021” [1], and Decree No. PF-60 dated January by 1.4 times, continue industrial policies aimed at 28, 2022, launched the "New Development Strategy of stabilizing the national economy and increasing the Uzbekistan for 2022–2026" [1]. industry’s share in gross domestic product. The third direction of this strategy defines several • Goal 24: Ensure uninterrupted electricity priority tasks, such as sustainable regional industrial supply to the economy and actively implement "green development, construction of new industrial economy" technologies in all sectors, improving the enterprises, enhancing the regional economy through energy efficiency of the economy by 20%. increased export and industrial potential, and creating • Goal 28: Increase the export potential of the favorable conditions for the establishment of Republic and reach an export volume of 30 billion USD industries. These tasks aim to fully realize the economic by 2026. interests of regional economic entities, optimize • Goal 29: Create conditions for organizing production, strengthen intra- and inter-sectoral entrepreneurial activity and establishing stable income cooperation, expand localization processes, and sources, increasing the private sector’s share in gross effectively utilize this sector’s potential to remain International Journal of Management and Economics Fundamental 10 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) domestic product to 80% and in exports to 60%. of the food and light industry sectors stimulates the growth of agriculture, forestry, and fisheries [6]. Today, the industrial sector offers effective solutions to challenges such as ensuring market balance, increasing Assessing the development of industry and its sectors economic competitiveness and population income, in regions is a complex economic process and cannot localizing production, and generating employment. be measured by a single indicator. Therefore, it is Notably, creating one job in manufacturing leads to the appropriate to consider various development trends creation of two to three jobs in other sectors [3]. when evaluating regional industrial progress. This system of indicators is reflected in the table below (see The dynamism of the production network significantly Table 1). influences the development of other industries and sectors of the economy. In particular, the development Table 1 System of indicators characterizing the level of industrial development in the region [6]. Indicators 1st Order 2nd Order 3rd Order 4th Order Economic indicators Industrial output per capita Industrial production index Export volume per capita Export index Real Sector Economic Labor productivity in Labor productivity index Developme activity industry nt Index index Employment in industry Employment network (thousand people) index Technological Indicators Capital productivity Capital Productivity Index Capital intensity of Incremental Capital Technologi industrial production Output Ratio cal Level Number of patent