FOUNDATIONS FOR ENSURING THE ECONOMIC POTENTIAL AND GROWTH OF THE REGION

Аннотация

This article presents the scientific and theoretical definitions given by economists to the concepts of “economic growth” and “economic potential” and their comparative analysis, as well as the importance of regional potential in ensuring sustainable economic development and economic growth. It highlights the main elements of economics growth and the categorization of the economic potential and the possibility of its use. The directions of strategicmanagement are explained. Keywords:economic growth, economic potential, economic development, potential elements.. Introduction. When carrying out economic reforms in our country, much attention is paid to ensuring the economic growth of the country through the effective use of the existing potential in the regions. In the priorities for the development and liberalization of the economy of the President of the Republic of Uzbekistan dated February 7, 2017, the priority areas for economic development and liberalization are the further strengthening of macroeconomic stability and the maintenance of high rates of economic growth, as well as the comprehensive and proportional socio-economic development of regions, districts and cities, their areas of integrated and effective use of the natural, mineral, industrial, agricultural, tourism and labor potential of each region in order to effectively use the existing potential, accelerate direct socio-economic development, to improve the standard of living andincomes of thepopulation [1]. The main economic problem of any country is to ensure stable economic growth and its high rates. Sustainable economic growth is about ensuring that the economy grows at a high rate for a long time, and high rates of economic growth are achieved as a result of a prudent macroeconomic policy, economic liberalization, modernization and diversification of production, as well as the acceleration and deepening of structural reforms aimed at technical rearmament. In order to introduce a unified system for assessing the integrated and proportional socio- economic development of the regions of our country, the efficiency of the use of natural and raw materials, economic and investment potential and other comparative advantages, the Decree of the President of the Republic of Uzbekistan, dated 01.05. rating systems for the socio-economic development of regions” a decision was made [2] to introduce a rating system, the implementation of which will ensure high rates of economic growth using the existing potential in the regions. Based on the foregoing, the relevance of this work is considered high. Literature review. The problems of economic growth now occupy a central place in economic discussions, in the dialogues of various politicians, members of the government, page375 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai representatives ofdifferent nationalities. Because the growth ofreal production allows, to one degree or another, to solve the problem, typical for any economic system, of satisfying unlimited needs inconditions oflimited resources. One of the early concepts of economic development, associated with the name of A. Smith and T. Malthus, was based on the assumption that labor, capital and population are the primary factors of its growth or slowdown. But they, like many supporters of classical political economy, did not take into account the importance of such an important factor as the development of human knowledge, the development of science and the application of its achievements toimprove theorganization oftechnology and production. [3]. Another prominent classical scholar, David Ricardo, argued that economic growth could be controlled through technological improvements in machinery and specialization in trade, but also assumed afairly steady state. Further concepts of economic growth focus on various combinations of the four determinants of development: labor, capital, resources and technology. In particular, of particular interest for theories of economic growth is W. Rostow's stage theory, according to which sustainable economic growth after a certain period of time leads to significant qualitative changes in the country's economic structure, and the economy naturally passes "from one stage to another", orfrom onestate to another [4]. Effective demand is a key factor in the Keynesian model, and it is the expansion of aggregate effective demand that should contribute to economic growth. In practice, Keynes focuses on supply factors, which is characteristic of the classical approach, and not on demand factors. According to Keynes, the multiplier effect of investment is important in the study of economic growth. The richer the country, the greater the share of the growing national incomeis accumulated and directed to investment. J. A. Schumpeter made a major contribution to growth the