Bulletin Social-Economic and Humanitarian Research, 2021, № 9 (11)

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Publication date: January 2, 2021 
DOI: 10.5281/zenodo.4263353 

 

Economical Sciences 

 

MEASURES TO STABILIZE THE SOCIO-ECONOMIC DEVELOPMENT OF 

REGIONS IN A PANDEMIC (ON THE EXAMPLE OF THE INDUSTRIAL 

COMPLEX OF THE TASHKENT REGION) 

 

Batirova, Nilufar Sherkulovna1 

 

1Senior lecturer, International Islamic Academy of Uzbekistan, Tashkent, Uzbekistan 

 

Abstract 

 

The article describes the features of the industrial development of the Tashkent region. Within one region, 

an industrial complex was analyzed. Some views of theorists on regional development are given. The opinions 
of these scientists on the factors affecting the development of industry in the region are analyzed. The economic 
potential and geographical location of the regions can lead to a clear division of the individual territories in 
industrial production. The economic and industrial potential of the Tashkent region was evaluated. It also 
analyzes the economic potential of the region. The role of regional sectors of the economy in the country is 
considered. It describes the economic potential of districts and cities, the availability of financial resources and 
the level of development of scientific and technological progress. It indicates the need to change the principles of 
state regulation of the scientific sphere for innovative development and the effective functioning of the region’s 
industry, foreign experience is an example of organizational and economic measures supporting the innovative 
development of the region’s industry. The composition of factors influencing the innovative development of the 
region's industry is also analyzed in turn. 

In particular, the emphasis in innovation is on the development of the human factor, science and 

technology. It is known that the growth of industrial production is not due to the expansion of extensive factors, 
but to a well-thought-out consistent policy in a systemic market economy, attracting foreign investment, profound 
structural changes in the economy, modernization and renewal of production, new export-oriented industries and 
enterprises organization through the development of private entrepreneurship. Particular attention is paid to the 
innovative development of industrial production. This makes it necessary to study the world experience in the 
innovative development of the region's industry. In this regard, the article also uses the results of the experience 
of developed countries in this area. World experience also provides examples of organizational and economic 
measures to support the innovative development of industry in the region. Recommendations are given on the 
targeted application of these measures. In conclusion, recommendations on the sustainable development of 
industry in the region are presented. 

Keywords: Region, industry, innovation, technology park, high economic growth, innovation cluster. 

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I. INTRODUCTION 

 

The pandemic is becoming a big test for the whole world. The current global crisis has a serious impact on 

the economies of all countries. According to the World Bank, by 2020, global GDP is expected to fall by 5.2 
percent, in the United States by 6.1 percent, in Russia by 6 percent, and in the European Union by 9.1 percent. 
At the same time, economic growth is expected to be 1% in China and 1.5% in Uzbekistan. Therefore, the 
country is taking numerous measures to increase economic growth using a new approach and tools. For this, 
several key areas were chosen, including efforts to increase the efficiency and competitiveness of production 
through deep processing of raw materials and the creation of an integrated production chain for value-added 
products, full-fledged inter-industry cooperation in order to enhance competitiveness. 

In the country, it is becoming increasingly important to "increase the share of industry in the economy, 

accelerate the development of high-tech industries and manufacturing industries, further modernize and diversify 
the industry, ensure the comprehensive and effective use of the industrial potential of each region, create new 
industrial enterprises and small industrial zones", "accelerate the implementation programs of modernization and 
increasing competitiveness in leading industries", as well as "providing industrial sectors with uninterrupted raw 
materials and modern infrastructure", in particular, the development of chemical, oil and gas, energy, electrical, 
building materials, jewelry. 

The Strategy for Innovative Development of the Republic of Uzbekistan for 2019-2021 emphasizes that 

“the rapid introduction of modern innovative technologies in sectors of the economy, including industry, social 
and other spheres with the widespread use of scientific and technological achievements, is a prerequisite for 
enhancing the scientific potential of research and development, and also, increasing effective mechanisms for 
integrating education, science and entrepreneurship for the widespread implementation of 
research, 

development and technology results, strengthening public and private investments in innovation, research, 
development and technology" as well as additional measures to support the population, economic and business 
sectors during the pandemic. 

 
 

II. METHODOLOGY 

 

The industrial complex is a branch of the economy that has a great influence on the level of development 

of the productive forces of society. The development of the industrial complex began in England and then spread 
throughout the world. If we turn to ancient history, we can see that in Arthashastra the state spent a lot of money 
on the development of industry [17,10]. Xenophon believed that since agriculture is the mainstay of the 
economy, a downturn in agriculture would also have a negative impact on industry [23,15]. According to Blaug, 
in order to support the industry, it was necessary to import cheap raw materials, introduce protectionist duties on 
imported industries, and stimulate the export of finished products. Thomas Mann believed that industry was an 
important sector and that industrial development would facilitate mutually beneficial foreign trade, while William 
Petty believed that the source of wealth was not trade and exchange, but production, and government support 
was important to stimulate industry. F. Kene, the founder of the school of physiocrats, believed that it is 
necessary to protect the industry with the help of custom tariffs, to finance the development of the industrial 
complex by issuing government bonds. Anne Robert Jacques Turgot viewed the industry as unproductive, 
calling those who worked in the industry an ineffective class. A. Smith, a representative of the classical school, 
opposed the idea of the physiocrats about the "inefficiency" of industry, showing the creation of wealth in 
industry. 

Later on, the scientific research of economists in our country also contributed to the study of this problem. 

In particular, in the scientific works of local scientists N.K. Yuldashev [20,23], E.Kh. Makhmudov, A.A. Artikov, H. 
Ishbutaev, A.M. Sodikov, A.M. Kodyrov, G. Gulomova, A. Akhmediev, Alimova, M. Makhkamov, Sh. Zainutdinov, 
the issues of the industrial complex and its development are covered. In particular, the works emphasize the 

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need to create a favorable macroeconomic environment for the development of the industrial complex. In this 
regard, it is argued that special attention should be paid to tax, monetary, pricing and exchange rate policies. It 
also emphasizes the importance of the country's economic potential and geographical location in the 
development of industry. 

Although the studies above mentioned have made a significant contribution to the development of industry 

and its innovative assessment in the country and its regions, it is necessary to pay particular attention to the 
intellectual factor, innovation and "growth points" in the development of industry in the region. 

In the course of writing the article, the state of innovative development of the region was assessed, and 

recommendations were made based on the analysis of open statistics. In the process of studying the topic, in 
addition to general economic methods, special approaches to structuring data were used, such as comparison, 
aggregation of theoretical and practical materials, and systematic analysis. 

 
 

III. DISCUSSION 

 

The restructure of the region's economy and the transition from the extraction of raw materials to the 

production of high-tech products means the transition of the region's economy to the path of innovative 
development. In this situation, the problem of technological backwardness of regions can be solved by taking the 
right direction in new technological systems, increasing innovation and investment activity, increasing the 
influence of the state on economic dynamics and transition to a new quality of development. In the context of 
globalization and increasing global competition, it is difficult to achieve developed industrial production without 
innovative development. This indicates the specialization of regions in the division of labor among the 
population, as well as the need to develop high-tech industries. 

In all regions, economic reforms in the industrial sector are aimed to attract local and foreign investment 

and launching complex types of production based on high technologies. In this regard, one of the main tasks is 
to attract foreign investment and advanced technologies for the implementation of industrial production based on 
high-tech structural requirements. In order to ensure the growth of the level and efficiency of industrial 
production, work is underway to expand import-substituting industries, increase export potential, develop basic 
industries, and increase the share of science-intensive industries. These processes are also observed in 
Tashkent region, which is one of the most important regions of the country [5,10]. 

The basis of the region's economy is metallurgy, processing and food industries, as well as the cultivation 

of agricultural products. Tashkent region, which is the object of the study, has great economic potential due to its 
geographical location and plays a significant role in the economic development of the country. One of the main 
advantages of the Tashkent region is the availability of production factors and natural resources, as well as 
additional and supporting industries. A feature of this region is its rich nature and population. The high 
concentration of the population in this region, the intersection of highways, as well as its historical development 
made it an important industrial center of the republic. The absolute dominance of the region in the production of 
certain types of industrial products (ferrous metals, corticosteroids, sulfuric acid, mineral waters, coal) plays a 
special role in the country's leading positions in the republic's industry. 

The region includes 15 districts and 7 cities. The areas of this region exceed the areas of other regions of 

the country in terms of the level of development of their industrial potential. There are 8666 industrial enterprises 
in the region. These enterprises are located in cities and districts of regional importance (Almalyk, Bekabad, 
Akhangaron and Chirchik, Zangiotinsky and Kibray districts). The diversity of the regions' contribution to 
industrial production indicates the uneven distribution of industrial production in the region. Only four cities of the 
region produce 61.2% of the region's industrial output (Almalyk, Angren, Bekabad and Chirchik). Agricultural 
production in these cities is less than 2%. The regions with a small share of industrial production (Akhangaron, 
Boka, Bekabad, Kuyichirchik, Akkurgan, Parkent, Piskent) account for almost half (43.3%) of agricultural 
production. The contribution of the districts to the industrial production of the region has remained practically 
unchanged over the years [2, 7]. 

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Table 1 

 
 
 

Share of regions in industrial production (percent) [3] 

 

Name

of cities and
districts

2000 y.

2001 y.

2002 y.

2003 y.

2004 y.

2005 y.

2006 y.

2007 y.

2008 y.

2009 y.

2010 y.

2011 y.

2012 y.

2013 y.

2014 y.

2015 y.

2017 y.

2018 y.

2019 y.

Changes

By region:
100 100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

Cities:

Nurafshon

1,9
1,7
1,9

Almalik
20,8 21,6 27,3 27,8
29,0 36,0 45,5
36,2 25,2 26,7
27,1 27,6
27,6 24,23
22,9 21,9 27,8 29,4 35,4 14,6

Angren

14,3 13,9 9,9
9,3
7,3
6,09 5,7
5,7
7,6
6,9
6,9
8,0
8,0
8,5
3,7
10,5 7,8
5,9
6
-8,3

Ohangaron

4,0
3,9
2,4

Bekabad

8,4
9,2
10,0 11,3
13,9 13,1 11,7
13,8 18,0 15,2
13,9 14,4
14,6 12,3
11,6 9,8
8,4
17,3 11,2 2,8

Chirchik

9,4
9,0
8,9
9,5
12,9 13,6 9,9
10,7 13,2 12,3
11,3 9,9
9,7
8,9
8,4
7,1
8,6
8,5
8,6
-0,8

Yangiyul

1,7
1,4
1,5

Districts:

Okkurgan

0,9 1,0
1,0
0,8
1,0
0,9
0,7
0,6
0,7
0,8
0,7
0,6
0,6
0,6
0,6
0,7
0,8
0,6
1,4
0,5

Ohangaron

6,6 6,6
6,4
5,3
4,7
5,6
5,1
6,6
5,9
5,4
4,3
4,2
4,0
6,9
7,5
9,1
0,6
0,4
0,3
-6,3

Bekobod

0,9 1,2
1,1
1,0
0,8
0,7
0,7
0,6
0,8
0,9
0,9
0,8
0,8
0,8
0,7
0,9
0,8
0,5
0,5
-0,4

Bustonlik

4,6 4,5
3,4
3,1
3,3
2,8
2,1
2,5
3,1
3,7
3,8
4,0
3,6
2,2
2,1
1,9
4,0
4,3
4,3
-0,3

Buka

0,6 0,5
0,8
0,9
0,8
0,8
0,6
0,6
0,8
0,8
0,7
0,7
0,7
0,6
0,6
0,8
0,7
0,5
0,4
-0,2

Zangiota

6,0 4,0
5,4
5,0
3,0
3,9
3,6
4,6
5,7
7,3
7,5
7,8
9,0
13,5
14,1 11,8 9,6
8,3
6,2
0,2

Kibray

8,7 7,9
5,9
6,8
6,7
5,7
5,2
5,7
7,6
7,7
8,5
6,2
7,5
5,98
6,2
12,9 8,5
5,8
6,7
-2,0

Kiyichirchik

0,7 0,7
0,8
0,8
0,8
0,7
0,7
0,7
0,8
0,9
0,9
0,9
0,8
0,7
0,7
0,7
0,7
0,5
0,5
-0,2

Parkent

0,4 0,6
0,6
0,5
0,4
0,3
0,2
0,2
0,2
0,6
0,8
1,1
0,9
1,1
1,0
1,1
0,9
0,7
0,8
0,4

Piskent

0,7 1,0
1,0
0,7
0,6
0,6
0,5
0,6
0,5
0,7
0,6
0,5
0,6
0,5
0,6
0,6
0,9
0,7
0,7
=

Urtachirchik

7,4 8,2
9,0
9,2
7,8
3,1
2,2
4,6
4,3
3,6
5,2
1,9
1,9
1,6
1,7
1,5
1,4
0,8
0,8
-6,6

Chinoz

0,6 1,1
1,6
1,6
1,4
1,0
1,1
0,9
0,1
1,0
1,1
1,2
1,2
1,2
1,1
1,2
1,3
1,0
0,9
+0,3

Yukorichirchik

0,7 0,8
0,8
0,8
0,8
0,8
0,8
0,9
0,9
1,1
1,2
1,5
1,5
1,5
2,0
2,7
2,9
2,2
2,0
+1,3

Yangiyul

0,4
3,2
3,8

Tashkent

8,2 8,1
6,1
5,4
4,9
4,5
3,6
4,3
4,4
4,6
4,9
4,1
3,4
4,1
4,6
4,9
2,8
2,4
-5,8

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This shows that some districts of the region specialize in industry, while others - in agriculture. This 

difference in the share of industrial production in the regions is explained by the different distribution of labor 
resources, natural raw materials, and financial resources by region. 

The region has a diversified and metallurgy-oriented industrial sector. The contribution of mechanical 

engineering, which gives an advantage in the production of high-tech industrial products, is also not good. This 
suggests that the region's industry specializes in raw materials. 

Table 2 

Technological structure of industrial production in developed countries, Uzbekistan and Tashkent 

region [4,160] 

 
 

Production
Developed countries
Uzbekistan
Tashkent

High-tech production
19
1,6
0,6

Medium-high-tech
production

28
29,7
16,1

Medium-low
technological production

21
29,8
62,7

Low-tech production
32
38,9
20,6

 

This contradicts the trends in the development of the world economy, which is characterized by a 

decrease in the share of the raw materials industry and an increase in the production of mechanical engineering, 
information technology and high-tech industries. The most important component of the effective development of 
high-tech industries, as well as production of deep technological processing is the availability of modern 
production equipment. Depreciation of industrial enterprises in the region remains moderately high. Also, in 
January-June 2020, the region's industry grew only by 1.8% compared to the same period last year. In a 
pandemic, the economy needs innovation to become an important component of leading enterprises. The 
innovative activity of enterprises in the region is very low. This is confirmed by the assessment of the state of 
innovation activity in the region. 

 

Table 3 

 

Assessment of innovative activity in the region 

 

Indicators
Methodical accuracy
Limit
Regional

indicator

Republican index

2018 y. [5, 40]]

Wear rate of fixed assets

of industrial enterprises of
the region, %

Defines the safety level

of
the
manufacturing

sector

<40
35,4
38,3

Number of students in

secondary specialized and
higher
educational

institutions per 10,000
population

Shows
the
level
of

cognitive potential of the
region

>600
333
302

Direction of enterprises'

own funds
for
research

and development, in% of
GRP

Reflects
the
initial

stage of innovation

>2,2
0,14
0,17

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Opening
activity

coefficient, pcs.

Number of applications

for patents for inventions
per 10,000 population

>500
0,138
0,086

Innovative
activity
of

organizations, %

Contribution
of

enterprises
implementing all types of
innovations

>25
1,2
0,92

Technological innovation

cost intensity, %

The ratio of the cost of

technological innovation
to GDP

>2
2,75
0,86

The
contribution
of

innovative
products
to

industry

The main indicator of

the
effectiveness
of

innovation

>10
4,93
8,77

Contribution
of
small

businesses
adopting

technological innovations,
%

Demonstrates
the

innovative
activity
of

small businesses

>10
0,33
0,33

The
contribution
of

research and development
costs to the structure of
technological innovation

Demonstrates
quality

investment
in

technological innovation

>40
10,8
7,4

R&D spending to GDP

ratio

Science
shows
the

level of attention
given

to the development of
science

=3
0,14
0,16

 

The figures in the table above show that the region has a low level of innovation activity. This reduces the 

possibility of organizing innovative forms of industrial development in the region. During the pandemic, it is 
important to increase the production of innovative and high-tech products in an environment where special 
attention is paid to “Development of export potential in regions and industries”. The rich natural resources and 
production potential of the region make it possible to rapidly develop the industrial sector in this area. The recent 
decree of the President of the Republic of Uzbekistan "On measures to further expand industrial production in 
the Tashkent region" will allow to build industrial enterprises in the region using modern equipment and 
technologies during the pandemic [15,6]. 

 
 

IV. RESULTS 

 

Based on the above definition and analysis, if a region mainly consists of industry and agriculture, in the 

long term, the disbalance (non-competitiveness) of the agricultural sector or insufficient competition in the 
industrial sector leads to structural instability of manufactured goods or labor activity in the form of labor 
migration. It is noted that the development of such processes will lead to a further decrease in the quality of 
human capital in certain regions. In some regions, the concentration of production capacities, their size and 
positive externalities give these regions an advantage. Ultimately, the development of only certain districts and 
cities will lead to an increase in the balance between the economic and social status of districts and cities, and 
the formation of false urbanization in urban areas. Industrial centers such as Chirchik, Angren, Almalyk, which 
are local points of agglomeration, in practice do not give a synergistic effect to the adjacent territories. The 
development of only a few agglomerations due to the backwardness of other regions, especially those 
specializing in agriculture, leads to the emergence of socially strained regions. The region has a developed 
mining and processing industry. Only in such industrial centers as Chirchik, Angren, Almalyk and Akhangaron, 
the location of large industrial facilities creates high differentiation. 

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Agriculture dominates the rural economy. The rich coal deposits of the Tashkent region and the growing 

demand for chemical and petrochemical products in the world market have allowed the fuel and energy industry 
to expand the range of goods and exports. However, given the competitiveness of raw materials on the world 
market and price fluctuations, the lack of diversification of industries can lead to serious situations in the regional 
economy [12,42]. Therefore, along with the expansion of the raw materials segment in the region, it is necessary 
to take serious measures for the deep processing of raw materials, thereby creating opportunities for the 
development of a secondary technological network of industry. Deep processing of cotton fiber, on the one hand, 
allows the region to develop in light industry, and on the other, to export products with the introduction of new 
technologies. The production of canned food and dairy products is becoming more widespread in the food 
industry. 

 
 

V. CONCLUSION 

 

Thus, the development of innovative products in the region can be characterized by the following trends. 

1. Insufficient financing of innovative activities. The limited resource potential of industrial enterprises in 

the region is one of the major factors in the development of innovative activities. The share of innovation costs in 
total production is very small. Inefficient funding affects the quality of innovation. This makes it impossible to 
carry out innovative activities on an ongoing basis. This eliminates the possibility of introducing radical 
innovations that cover the entire period of the production cycle, from specialization in research to preparation for 
production technology and the release of new products. For this reason, the number of enterprises engaged in 
innovative activities is small. In 2018 the total number of organizations producing innovative products was 373. 
The total number of enterprises in the region is 35 385, of which enterprises producing innovative products make 
up 1% on average [18,41]. Reasons for low innovation activity: 

- lack of financial resources; 

- payback period for innovations; 

- high risk; 

- lack of qualified specialists; 

- underdeveloped innovation infrastructure; 

- Insufficient innovation potential. 

2. Enhancing the role of small business in strengthening innovation processes. As a rule, they can provide 

greater efficiency in the production and introduction of innovative products with a low assortment in the context 
of activity, quick adaptation to new changes, deepening diversification and individualization of production. 
However, it is unlikely that small businesses in the region will have a significant impact on the growth of 
innovation activity. 89% of enterprises producing innovative products in the area are small businesses. However, 
51% of innovative products are produced by large enterprises (11%). Practice shows that even small innovations 
are carried out only by enterprises that have received financial, intellectual and informational support from the 
state or large enterprises. Typically, large enterprises conduct their initial analytical processes in small 
enterprises [19,25]. 

3. Low efficiency of innovation. The development of high-tech industries and the strengthening of their 

positions in the world market for high-tech products are impossible without the connection between science and 
production. Therefore, it is necessary to create a favorable environment for the development of competitive 
production based on innovative strategic development of basic industries. Therefore, the process of enhancing 
the innovation processes of the state is of great importance in the implementation of structural transformations in 
industry based on modernization and diversification, achieving the goals set to increase competitiveness in the 
country. 

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In the process of studying the features of the industrial development of the region, it is advisable to carry 

out the following work in this direction. 

The first direction in this area is active government support for investment projects. Of course, this is due 

to a decrease in the tax on profits of investor enterprises. It is advisable to provide organizational support in 
complex processes that occur during the implementation of investment projects, especially in a pandemic. Unlike 
traditional investment projects, the credit risk associated with the development and implementation of innovative 
projects is much higher. If the private sector considers innovation risks to be excessive, the government should 
accept these risks and invest in new innovative projects. The main sources of financing are budgetary funds, 
extra-budgetary funds, own funds of enterprises, loans, innovation and special funds, innovative foreign loans, 
grants, insurance funds (direct sources), tax incentives and discounts, loan incentives, equipment rental, 
customs. Currently, one of the most promising forms of innovative financing is venture financing. In this area, it is 
desirable to develop a system of venture financing with the involvement of commercial banks, insurance 
companies and others. It is also necessary to attract funds from the private sector and multinational companies 
in this area, creating additional incentives and preferences to support research [8,15]. 

The second direction is to ensure the development of the research complex, innovation activities and 

enterprises, for which all conditions have been created in the region. The region is an active participant in 
international economic relations. The main task is to involve the enterprises of the region in the process of 
international cooperation, to facilitate the rapid exchange of best practices. Consumer access to national and 
neighboring markets is a key factor in the development of a number of priority sectors. Priorities for enhancing 
innovative factors of long-term growth should be systematic and cover three main areas that have a multiplier 
effect on the economy as a whole: improving the quality of state institutions and creating the necessary 
infrastructure for innovative development, improving the quality of human capital, and improving financing of 
innovative projects. development of the research sector. 

The third area is creating conditions for the implementation of innovation policy. The main task here is to 

attract resources for the implementation of innovative projects, the development of infrastructure to support small 
businesses. It is also necessary to improve the culture of doing business, increase the investment attractiveness 
of the region, increase the prestige of innovative business, attract personnel, investments and resources. 
Consequently, the transition to an innovative model of economic growth will be impossible without profound 
structural and qualitative changes, including an increase in the share of industry in GRP and the emergence of 
new types of high-tech products in the industry. Thus, the regional development model should focus on 
increased investment and technology transfer rather than product diversity. Policy measures in this area include 
public funding for innovation projects, tax incentives for research projects, support for collaborative technology 
transfer initiatives, and regulation. 

The fourth direction is the creation of conditions for the creation of industrial clusters of innovative 

production: modernization of existing enterprises and the creation of new enterprises in strategically important 
areas; Formation of regional orders for industrial enterprises; Support in the implementation of high-tech 
projects; Inclusion in regional investment programs, Allocation of targeted financing; Development of a marketing 
strategy for bringing the cluster products to the domestic and foreign markets; Development of the transport 
infrastructure of the region. 

The implementation of measures in these areas will contribute to the optimization of existing production 

structure, the development of the region's technological potential, and the formation of a high-tech competitive 
industrial complex in the region. Ultimately, the modernization of the industrial complex will increase the 
competitiveness of the region's economy and the life quality of the population. 

© Journal «Bulletin Social-Economic and Humanitarian Research»,  № 9 (11), 2021, e-ISSN 2658-5561

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