SELF-EMPLOYMENT AS A MEANS OF ENSURING THE WELL-BEING OF THE POPULATION IN UZBEKISTAN

Abstract

A set of direct factors for the well-being of the population is the level of income, labor productivity, ensuring employment of the population, fair distribution of income, the level of accessibility of healthcare, education, and information technology.

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Mirzakhalilova, D., & Vasser, P. (2023). SELF-EMPLOYMENT AS A MEANS OF ENSURING THE WELL-BEING OF THE POPULATION IN UZBEKISTAN. Editions, 43–46. Retrieved from https://www.inlibrary.uz/index.php/editions/article/view/92112
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Abstract

A set of direct factors for the well-being of the population is the level of income, labor productivity, ensuring employment of the population, fair distribution of income, the level of accessibility of healthcare, education, and information technology.


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SELF-EMPLOYMENT AS A MEANS OF ENSURING THE WELL-BEING

OF THE POPULATION IN UZBEKISTAN

Mirzakhalilova Damira Minnisalikhovna

Branch of the Russian State University

Oil and Gas named after Gubkin in Tashkent,

Candidate of Economic Sciences, Associate Professor

of the Department of Economics of Oil and Gas

Vasser Polina Nikolayevna

Branch of the Russian State University Oil and Gas

named after Gubkin in Tashkent, Student

A set of direct factors for the well-being of the population is the level of

income, labor productivity, ensuring employment of the population, fair

distribution of income, the level of accessibility of healthcare, education, and

information technology. In modern economic conditions, one of the current

threats to the well-being of the population is unemployment, the prevention of

which requires regulation. The regulatory mechanism manifests itself in the

process of regulating the income of the population and has all the characteristics

of an economic category. It expresses real economic relations in society regarding
the creation, primary distribution and redistribution of income as a manifestation

of the economic realization of ownership of factors of production in order to

ensure an increase in the level of income as a factor in the growth of well-being.

The form of expression of the social purpose of the mechanism for regulating

the income of the population is the functions it performs: environment-forming,

distribution, stimulating, social. Self-employment is one of the strategic directions

in the economy, aimed at reducing tensions in the labor market and performing

the above-described regulatory functions [1]. In the economic dictionary, the

term self-employment means employment in labor or management in one's own

household or in one's own company. In most cases, self-employment is work done
as part of one's own business rather than being hired.

It should be noted that self-employment performs the following economic

functions [2]:

1.

Increases the overall share of citizens employed.

2.

Reduces state treasury expenses due to reduced funding for programs

aimed at the unemployed.

3.

Creates a ton of additional jobs and government revenue from taxation of

new individual microenterprises and small businesses.

4.

Helps raise the standard of living of citizens and their incomes.

5.

Reduces the risk of tension in society due to high unemployment and lack

of paid work, caused, in particular, by any crises.

6.

Youth can succeed in this type of employment by solving the problem of

their employment.


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7.

Reduces the risk of a negative process of professional deformation of the

unemployed and other functions.

In Uzbekistan, the use of non-standard forms of employment organization, in

particular self-employment, is an important way to mitigate the situation in

regional labor markets. It opens up the possibility of influencing employment by

limiting the supply of labor on the open labor market, making it possible to

simultaneously limit the large-scale release of employees and prevent a surge in

unemployment. The introduction of non-standard forms of employment is a

measure that meets the interests of both individuals and employers, and society

as a whole, and can, to a certain extent, mitigate the imbalance in the labor market.

In Uzbekistan, the activities of the self-employed are regulated by the

Regulations on the procedure for carrying out activities by a self-employed

person. Initially, it is worth noting the level of taxation. In accordance with this

system, self-employed persons are required to pay only social tax, the fixed rate

of which is 1 Basic Calculated Value (BCV) per year. A significantly important

aspect is that all income received from the entrepreneurial activities of a self-

employed person is completely exempt from personal income tax.

In addition, it should be emphasized that there is no need to maintain

complex tax and financial records, as well as the absence of accounting

requirements. This aspect simplifies administrative barriers, allowing
entrepreneurs to focus on their activities.

An important aspect of this system is the right of self-employed persons to

work with both individuals and legal entities. Since the introduction of this system

from the beginning of March 2023, entrepreneurs can also hire self-employed

individuals as home workers, which opens up new prospects for business

development.

It should also be emphasized that it is possible to provide services to foreign

individuals and legal entities, which helps expand markets and increase potential

income.

However, it is worth noting that the taxation system for self-employed

persons takes into account work experience, which ensures the preservation of

social guarantees and future benefits. And finally, it is important to emphasize

that this system does not require a legal address to carry out business activities,

which provides flexibility and comfort when working, including the possibility of

organizing activities from home.

Today in Uzbekistan there is no term “freelancer” at the legislative level.

However, taking into account the essence of this term (Freelancer is a type of

employment in which a specialist provides himself with work independently), the

conc

ept of “self

-

employment” is equivalent to the concept of “freelancing”. At the

same time, a very important question today is to what extent Uzbekistan is able

to successfully enter the global freelance market. To carry out the assessment, the

World Bank me

thodology “Assessing Country Readiness for Online Outsourcing”

was used. This methodology has been adapted to modern available indicators.


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Thus, to assess Uzbekistan’s readi

ness to enter the freelance market, 27

indicators were used, which were divided into 4 blocks: availability and quality of

talent, costs, infrastructure and creation of favorable conditions [3].

Table 1

Index of readiness of Uzbekistan to enter the freelance market

Indicators

2015 2016

2017

2018

2019

2020

2021

Block 1. Availability and

quality of talent

45,7

46,6

48,4

46,6

47,6

55,5

59,7

Block 2. Costs

45,6

48,9

45,6

47,0

51,2

53,7

57,9

Block 3. Infrastructure

38,0

41,5

44,8

48,8

53,3

59,3

64,2

Block 4. Creation of

favorable conditions

46,2

46,3

50,6

49,0

45,4

58,1

54,3

Сomposite index

43,9

45,8

47,4

47,9

49,4

56,7

59,0

As a result of the measures taken in the country, the Index of Uzbekistan’s

readiness to enter the freelance market increased from 43.9 to 59.0. The greatest

impact on this was made by improvements in the indicators of block 3. Thus, the

average indicator for the “Infrastructure” block increased from 38.0 to 64.2. The

greatest growth was noted in such indicators as the capacity of the international

data network - an increase of 74.7 times (16.1 Gbit/s in 2015 and 1200 Gbit/s in

2021), the number of users (individuals) of remote banking systems - 20.2 times

(979.5 thousand people in 2015 and 19,705.2 thousand people in 2021), the

number of mobile communication base stations - 2.8 times (16.3 thousand in

2015 and 45.9 thousand units in 2021), the number of fixed broadband access

subscribers - 2.4 times (5.8 subscribers per 100 people in 2015 and 14.4

subscribers in 2021), Internet coverage of the population - 2 ,2 times (26.6

connections per 100 people in 2015 and 58.4 connections in 2021) and others [3].

Also, significant growth is observed in other blocks in such indicators as the

higher education enrollment rate - an increase of 3.8 times (8.3% of the

population 18-22 years old in 2015 and 31.3% in 2021), the total number of
Internet users in the country increased by 2.4 times (10.2 million people in 2015

and 24.7 million people in 2021), the cost of tariffs for Internet services (external

channel) for providers decreased by 86.4 times ($259.3 in 2015 and $3.0 in 2021),

exports of ICT goods

an increase of 2.4 times (0.07% share in total exports of

goods in 2015 and 0. 16% in 2021). In general, the assessment research showed

that positive changes are taking place in Uzbekistan aimed at supporting

freelancers and creating the conditions necessary for them. The coronavirus

pandemic has accelerated these processes through a sharp increase in the

digitalization of the country's economy [3].

In light of modern economic and social challenges, the development of self-

employment in Uzbekistan is becoming an important strategic task. To achieve

this goal, efforts need to be focused on several key areas.

First of all, infrastructure should be developed, providing access to

technology, Internet connections and financial resources, which will allow


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potential self-employed individuals to effectively conduct their activities and
create new projects. An important element of stimulating self-employment is a

correct tax policy, which eases the tax burden for self-employed citizens and

creates conditions for their more active participation in the economy. Expanding

the range of activities that can be defined as self-employed also contributes to the

development of this form of entrepreneurship, providing citizens with more

opportunities to choose and implement their business ideas. The development of

self-employment in Uzbekistan will not only create additional sources of income

for citizens, but also contributes to economic growth, the creation of new jobs and

increased tax revenues to the budget. This will strengthen the financial stability

of the state and improve the quality of life of the population, and therefore the
level of their well-being.

References:

1.

Baytenizov D.T., Dubina I.N., Azatbek T.A., Campbell David F.J., Karayannis Elias G.

Economic functions of self-employment // Economics Profession Business. 2018. No. 3.

2.

Klimonova A.N. Welfare of the population as a target for the activities of the state:

essence, elements, factors of well-being // Socio-economic phenomena and processes. 2016. No.

12.

3.

Assessing the readiness of Uzbekistan to enter the freelance market. IMRS.

https://imrs.uz/archives/news/freelance.

THE ROLE OF GENDER NORMS AND POWER RELATIONS IN SHAPING

ENVIRONMENTAL DECISION-MAKING, AND HOW THEY CAN BE

ANALYZED THROUGH A GENDER LENS

Mamadjonova Sarvinoz

PhD student of Westminster International

University in Tashkent

Sharofutdinova Dilobar Toshpulatovna

Senior Lecturer, Department of Organization of

Pharmaceutical Labor at Tashkent Pharmaceutical Institute

Gender norms and power relations are pivotal in shaping environmental

decision-making processes and outcomes, often in ways that go

unnoticed.

Research has shown that gender inequalities can influence the

allocation of production assets within households, leading to male dominance in

decision-making regarding innovation uptake and use of outputs [1]. Additionally,

gender has been recognized as a key factor in understanding differences,

inequalities, and power relations in environmental justice struggles worldwide,
particularly in movements related to bodily wellbeing, land protection, livelihood,

and climate justice [2].

Analyzing these dynamics through a gender lens is

essential for comprehending how societal expectations and power imbalances

can influence environmental policies, practices, and their impacts.

References

Baytenizov D.T., Dubina I.N., Azatbek T.A., Campbell David F.J., Karayannis Elias G. Economic functions of self-employment // Economics Profession Business. 2018. No. 3.

Klimonova A.N. Welfare of the population as a target for the activities of the state: essence, elements, factors of well-being // Socio-economic phenomena and processes. 2016. No. 12.

Assessing the readiness of Uzbekistan to enter the freelance market. IMRS. https://imrs.uz/archives/news/freelance.