Ўзбекистон республикaси иқтисодий тaрaқҚиёт

DIGITAL ECONOMY AND ITS PROSPECTS FOR DEVELOPMENT IN 
UZBEKISTAN 
 
Tursunov B. 
–
 Senior lecturer of TFI 
Tuxtasheva X. 
–
 student of TFI 
 
Thanks to the development and application of information technology, many 
conveniences are emerging in our daily lives. Let’s say we want to eat, but we don’t 
want to cook it, no problem, we can order any food online through the home delivery 
service online. Or we need to transfer money to a friend, there is no need to go to a 
bank or financial institution, we can transfer money through mobile banking. We can 
do many of these types of services online, via smartphone or computer. In recent times, 
the concept 
of “digital economy” has been used many times. Indeed, in many 

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developed countries, the digital economy has had a significant impact on their 
development factors. The digital economy plays an important role in the life of society. 
At a time when the concept of digital economy was relatively recent, it was discovered 
in 1995 by Nicholas Negroponte, an American scientist at the University of 
Massachusetts. The scientist spoke about the possible changes in the transition from 
the old economy to the new economy, following the intensive development of 
information and communication technologies. 
The digital revolution has transformed our lives and societies with unprecedented 
speed and scale, delivering immense opportunities as well as daunting challenges. New 
technologies can make significant contributions to realizing the Sustainable 
Development Goals, but we cannot take positive outcomes for granted. We must 
urgently improve international cooperation if we are to achieve the full social and 
economic potential of digital technology, while avoiding unintended consequences. 
The so-called digital economy continues to extend its scope across every facet of the 
conventional analog economy, and more and more commercial purchases are going 
online. For enterprises, this ensures they have access to new platforms to meet existing 
consumers, as well as new markets through a compelling digital offering to increase 
market share. The ever-expanding digital economy offers consumers greater access to 
goods and services at their fingertips, as well as greater ease of viewing and comparing 
their knowledge. This helps to foster more aggressive pricing among suppliers, too. In 
certain cases, the emergence of digital platforms in developing economies has enabled 
industries to effectively bypass the development processes seen in other countries, 
turning straight to digital solutions rather than engaging in large hard infrastructure 
networks. 
The digital economy is a business activity in which the main factor in the 
production and service is data in the form of numbers, which can be processed by 
processing large amounts of information and analyzing the results of various types of 
processing. is to implement more efficient solutions than the previous system in 
production, services, technologies, devices, storage, delivery of products. In other 
words, the digital economy is an activity associated with the development of digital 
computer technology in the provision of online services, electronic payments, Internet 
commerce, crowdfunding and other types of industries. E-commerce, internet banking, 
e-payments, internet advertising and, at the same time, internet games are considered 
to be the main elements of the development of the digital economy. 
Digital economy refers to an economy that is based on digital computing 
technologies, although we increasingly perceive this as conducting business through 
markets based on the internet and the World Wide Web. The digital economy is also 
referred to as the Internet Economy, New Economy, or Web Economy. Increasingly, 
the digital economy is intertwined with the traditional economy, making a clear 
delineation harder. It results from billions of everyday online connections among 
people, businesses, devices, data, and processes. It is based on the interconnectedness 
of people, organizations, and machines that results from the Internet, mobile 
technology and the internet of things. 
Of course, the development of information and communication technologies, the 
introduction of modern technologies in our lives can give many positive opportunities 

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in everyone's life. With the development of digital technology, a person can use the 
service he needs faster, save a lot of money by buying the products he needs online. 
For example, buying an electronic version of a book can make it much cheaper for you 
to buy a printed version of that book. Or an ordinary consumer can be an entrepreneur 
himself, engaging in online shopping without leaving home. 
Other benefits of developing a digital economy include: 
increase of labor efficiency in production; 
increasing the competitiveness of companies; 
reduction of production costs; 
creation of new jobs; 
emergence of new modern professions; 
overcoming poverty and eliminating social inequality. 
These are just a few of the advantages of the digital economy. The development 
of the digital economy will have a positive impact on our daily lives, provide many 
additional opportunities for the average user, and further ensure the growth and 
development of the market. 
Risks posed by the digital economy: 
Cyber attack risk, personal data protection issues; 
“digital slavery” (the use of millions of people’s data to later control their 
behavior); 
many industries and occupations may disappear following the rise in 
unemployment, the development and application of information technology. 
The study of world experience has shown that in developed countries in the digital 
economy, the state (government) market «game» rules are set for all participants in the 
game, and the most important task of the state is to is to create a different, equal and 
accessible environment. That is, whether there is a large company in the market or a 
small business, they are equal. They are given the same opportunities. Government 
regulations are enforced and ultimately the average consumer is guaranteed to receive 
a quality, modern service or product. This means that for the development of the digital 
economy, the state should create equal conditions for all, as transparent as possible 
market rules, laws, contracts, laws based on market demand should provide freedom 
for game participants. 
Like other countries in the world, a digital economy is developing in Uzbekistan. 
With the introduction of information technology in our daily lives, many opportunities 
are being created for ordinary people. Nowadays, we can order a lot of groceries and 
meals without leaving home, and they can deliver them to our home. However, it 
should be noted that the digital economy in Uzbekistan is developing several times 
slower than the potential of Uzbekistan. That is, an opportunity, the necessary 
resources are available, but development is much slower. The reason for this is a 
number of obstacles to the development of the digital economy in Uzbekistan. 
monopoly in many areas; 
low internet speed and poor quality; 
outdated legislation in the field of information technology; 
extremely low level of computer literacy among citizens; 
non-transparency of the legislation; 

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Lack of IT specialists or their departure to other countries; 
information culture, low information hygiene; 
poor security of information technologies; 
Lack or (in some) absence of specialists in the governing bodies who understand 
the field; 
Slow (or stagnant) development of science and especially specific sciences. 
If the above-mentioned problems are solved step by step, systematically, based 
on world experience, Uzbekistan can easily become one of the countries with a 
developed digital economy. 
When we talk about the digital economy, we do not need to understand only 
Blockchain technology and their use in international financial markets or 
cryptocurrencies. Digital Economy is an economy in which digital communications are 
carried out using IT. 
Some may wonder why the digital economy is needed and what it provides. When 
we talk about the digital economy, we do not need to understand only Blockchain 
technology and their use in international financial markets or cryptocurrencies. Of 
course, blockchain technology and cryptocurrencies are also part of the digital 
economy. But the Digital Economy means the economy in which digital 
communications are carried out using IT. At the same time, it can also be seen as a 
means of eliminating the shadow economy. Because, firstly, all transactions will be 
registered electronically, and secondly, they will be transparent. In addition, the use of 
new IT technologies in production reduces the cost of products and services. 
According to experts, by 2020, more than 30% of large banks will start using 
blockchain technology in their operations. This is due to the fact that despite the 
relatively recent development of blockchain technology, its inclusion of revolutionary 
changes in existing business processes has aroused great interest among financial 
market participants. 
There is another factor to consider. The President set the development of the 
digital economy as a priority. The reason for this is to ensure the rapid growth of the 
Uzbek economy, to keep pace with the times, to accelerate the integration of our 
country in the international arena and, as a result, to make Uzbekistan one of the most 
democratic and economically developed countries.