Egamberganov Jahongir Kadambaevich
Tashkent State University of Economics
2nd year student of the Faculty of Corporate Governance,
Khalikov Ulug‘bek Rustamovich
Tashkent State University of Economics
Dean of the Faculty of Corporate Governance, Ph.D
https://doi.org/10.5281/zenodo.8173923
Qabul qilindi: 21.07.2023
Crossref DOI: 10.24412/cl-37059-2023-07-39-42
UDK: 330.322.54
Annotation: This article highlights the role of foreign investment in the economy, the state of attracting foreign investment in the development of sectors in the Republic of Uzbekistan and the main areas of promotion and improvement of foreign investment.
Keywords: economic changes, system-forming, private investments, capital, experience show.
INTRODUCTION.
Over the past few years, Uzbekistan has experienced rapid economic changes and is increasingly manifested in the international community as one of the symbols of openness, renewal and perseverance in overcoming various obstacles to business and investments.
OBJECT AND METHODS OF RESEARCH. MATERIALS AND METHODS OF RESEARCH.
In order to effectively enforce the law "on investments and investment activities" of the Republic of Uzbekistan, a 4-step mechanism of cooperation of state authorities consisting of investors and deputy heads of the Ministry of investments and foreign trade, governorates, diplomatic missions abroad and commercial banks has been successfully established. This mechanism allows you to quickly respond to all requests from investors and control the effectiveness of the implementation of the measures provided for by law in the desired way. In this regard, it is important to highlight the role of the Council of foreign investors under the president of the Republic of Uzbekistan, formed with the support of the European bank for reconstruction and development, providing direct communication with investors operating in the Republic.
The development of the International Institute of arbitration courts is also actively supported. In turn, this ensures the rule of law, which is an important and system-forming component of the country's investment environment, and the proper fulfillment of obligations under state and local investors. At the same time, world practice and experience show that it is no longer possible to solve the problems that hinder the investment and innovation activities of a business by simple means, that is, by making concessions or publishing new declarative norms.
To activate private investments, it is required to liberalize entrepreneurial activity. It is necessary to constantly communicate with business, diligently work on identifying and overcoming obstacles that prevent the development of certain sectors. In this regard, active work is carried out on the following areas.
First of all, in order to maintain a high and stable pace of economic growth, it is necessary to form a stable and competitive model of the country's economy, in which a large part of the assets of the banking system are in the hands of private investors.
Secondly, in order to increase investment attractiveness and ensure the rapid growth of infrastructure-oriented investments, which are one of the main factors of sustainable economic growth, it is also actively carried out to stimulate investment activity through the development of public-private partnerships and project financing tools.
Thirdly, the relationship between investors and the state is being optimized in order to completely eliminate bureaucratic barriers and restrictions on the implementation of investment projects through digitization and remote provision of public services. The quality of organizing work with appeals and requests from foreign investors is improving in order to maximize transparency and prevent corruption.
Fourthly, there is a decrease in transaction costs, which leads to the outflow of Labor and capital from the legitimate sectors of the economy to the hidden economy.
Fifth, an investment policy strategy is being developed aimed at the most promising areas of Uzbekistan, which can become a point of technological achievement in the future and provide the basis for the development of the country's production capacity for the next 20-30 years.
Considering that the investment environment affects all areas of activity in the country, the scope of the reforms covered economic, institutional, educational, health, agricultural, water supply, energy, transport and other areas. There is also a strong emphasis on the practical support of entrepreneurs and initiators of investment projects. The most striking example in this direction is the activities of the government commission on export and investment development issues, established in 2020, the tasks of which include close cooperation with entrepreneurs and exporters, the assumption of problems with restrictions caused by the pandemic, as well as the development and implementation of quick and effective solutions based on an individual approach to solving the problem.
As a result of the activities of the members of the commission at the end of last year, the activities of more than 98 thousand enterprises were studied in the order of destination, and as a result, 6,235 problematic issues of 5,902 enterprises were identified. Each of the problems was solved in close cooperation with the relevant ministries, departments, commercial banks, local authorities and the Republic's diplomatic missions abroad. As a result of this, the Ministry of economic development and poverty reduction presented Uzbekistan's economic development trends for 2020 and forecasts for 2021. As of the end of 2020, the volume of investments in fixed capital decreased in Real value by 8.2% compared to 2019 and amounted to 202 trillion soums. The volume of investments financed from centralized sources decreased by 34.9% to 39.3 trillion soums. There was also a 33.6 percent decrease in budget-funded investments, a 75.7 percent decrease in OTC funds, and a 28 percent decrease in government-backed foreign investments and loans.
In 2020, the volume of foreign direct investment decreased by 32.7 percent (excluding unsecured foreign loans) to $ 2.9 billion (the decline in the dollar equivalent was 33.8 percent). According to the report, unsecured foreign loans increased more than 1.6 times (from $ 2.4 billion to $ 3.5 billion) compared to the same period last year due to the implementation of investment projects in the following industries, including:
NKMK - $ 636.5 m;
AJ "Uzbekneftgaz — $ 154.8 million (LLC "Shurtan GKM" - increase production capacity — - $ 122.7 million);
JSC "uzeltexsanoat" — $ 101.8 million (production of household refrigerators - $ 48 million);
Ministry of atkr — 89.4 million dollars (development of broadband telecommunications network — 35.5 million dollars);
"Uzqurilishmaterialari" AJ - $ 91 million.
22.1% of foreign direct investments are directed to the implementation of projects in the field of natural gas production, 22.5% to the production of other non-metallic mineral products, 9.3% to construction work.
CONCLUSIONS.
In addition, the level of direct investments for the formation of fixed capital in the sectors of export potential — mechanical engineering, electrical engineering, metallurgy, chemical and pharmaceutical-remains low.
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