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particularly in the case of SMEs, which have in 
the past been excluded from mainstream global 
trade. The digital economy environment consists 
of various components and infrastructures, 
including 
telecommunications 
and 
financial 
services, computing, the Internet and much more.
Results of our research suggest that there are 
main barriers and obstacles in the way of full 
realization of potential of e-commerce in 
Uzbekistan, here we will list them: 
1. Main challenge can be associated with 
overall cover of the population with Internet.
2. Another most prominent weakness is 
related with skills and experience of businesses in 
this field.
3. Shortage of quick and popular virtual 
payment system where banks play active role and 
act as a guarantee for success and safety of 
transactions.
4. 
Insufficient 
promotional 
activities 
regarding to popularization of e-commerce and 
new existing business models among consumers 
and of explanations on how the system works in 
order to make the population be aware of such 
services and actively involve them, which may 
create a strong demand, and as a result can bring 
more businesses into e-business. 
5. Underlying of main obstacles and barriers 
in further development of digital economy in 
Uzbekistan is important as it helps to define main 
problems in this field and solving these problems 
systematically can help to increase the scale and 
scope of e-business and thus can help to benefit 
from its all advantages. 
Suggestion on developing E-government in 
Uzbekistan
1. It is necessary to elaborate legislative 
basis 
regulating 
public 
administration 
performance aimed at ensuring transparency, 
establishing e-mechanisms of G2B and G2C 
interaction. In this regard it seems reasonable to: 
• Formulate Concept Paper and Strategy of 
E-Government Development in Uzbekistan; 
• Introduce amendments to the Law “On 
Requests of Citizens”; 
•Adopt the Decree of the Government “On 
Information Registries Compulsory for; 
• Critical improvement of the governmental 
portal (www.gov.uz) operation and development 
of an integrated multifunctional interactive tool of 
information interaction between the Government, 
citizens and business based on the current official 
portal of the Government; 
• Elaboration and introduction of electronic 
official and administrative regulations based on 
comprehensive functional analysis of public 
administration bodies within the framework of 
administrative reform. 
2. It is necessary to revise the mechanisms 
of financing ICT introduction process into public 
administration performance. Introduction of a 
separate expenditure item to the state budget, not 
less than 1% of total state budget for ICT 
development, elaboration of a mechanism of 
coordination and monitoring of costs with an aim 
to reduce unjustified overspending or non-targeted 
spending of budget funds by this expense item. 
3. Further ICT infrastructure development in 
the country would require: 
• Amendments and addenda introduced to 
the Program on Computerization and Information-
Communication Technologies Development for 
the period of 2019-2021 years; 
• Ensuring adequate financing for activities 
within this Program; 
• Revision of certain target indices of the 
Program, in particular: the quantity of ports of 
data transmission networks, Internet users, 

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coverage of settlements on the part of Internet 
centers; 
Reduction of restricting procedures for 
activity carried out by business structures in the 
area of telecommunication services provision: 
licensing, authorization, and certification; 
4. It is necessary to introduce amendments 
into current legislation regulating ICT application 
in various aspects of political, economic life of the 
country 
(e-government, 
e-commerce 
and 
education). 
• Bringing sectoral legislation in line with 
realities of application of advanced technologies 
of information exchange including e-purchases of 
goods (services) for the state needs; 
• Clarification of normative rules related to 
information protection; 
• Adoption of the Law “On Software 
Crimes”. 
Under current conditions in Uzbekistan e-
government, first of all, means improvement of 
public administration system performance and 
optimization of interaction mechanism between 
the Government and business with an aim to 
reduce pressure on entrepreneurship and cur down 
transaction costs for business activity, expanding 
access for entrepreneurs to information and 
documents of government institutions necessary 
for business development. In particular, e-
government implementation will allow solving the 
following problems of public administration 
system that currently hinder effective promotion 
of SME development. 
First, formulate and improve normative-
legal grounds to ensure information openness of 
public administration bodies through ICT means, 
thus increasing opportunities of business on the