Bases of increasing the competitiveness of the national economy

At present, the economic development in our country goes beyond national and regional borders and is integrated into national and international processes. In addition, the cooperation in the modern economy and the distribution of labor are deepening. As a result, on the one hand, millions of companies, as well as thousands of sectors and sectors are gaining momentum, on the other hand, the competition between them on the market and competition in expanding its coverage is becoming increasingly intense.

The Strategy for the five priorities of the Republic of Uzbekistan for 20172021 focuses on increasing competitiveness of domestic enterprises in domestic and foreign markets. Because this issue is becoming more relevant in the context of globalization.

Of course, the necessity of modernization and diversification of the economy is directly related to the final goals of the economic reforms in our country, the changing macro and microcredit conditions of the enterprises' economic activity. At the same time, the impact of the intensification of the international market competition can not be overestimated. Enterprises of the country are obliged to purchase many resources and services from monopoly markets, to sell their goods at competitive international or domestic markets. This adversely affects the financial potential of technological modernization. Competitiveness of the national economy can ensure its optimal integration into the global economy.

Modernization (from the English. Modern - modern, advanced, updated) -is:

• •    Updating an object, bringing it in line with new requirements and norms, technical conditions, quality indicators. Machines, equipment, and technological processes (for example, computer upgrades) are mainly upgraded.

• •    The macro-process of transition from a traditional society to a modern society, from an agrarian society to an industrial one. According to S. N. Gavrov, the historical concept of modernization is considered primarily in three different meanings: a) as an internal development of the countries of Western Europe and North America, referring to the European New Time; b) catch-up modernization, which is practiced by countries not belonging to the countries of the first group, but seeking to catch up with them; c) the processes of

evolutionary development of the most modernized societies (Western Europe and North America), ie, modernization as a permanent process, carried out through reforms and innovations, which today means a transition to a postindustrial society [1]. Modernization theory deals with the study of modernization.

• •    The process of completely or partially changing the social system in order to accelerate development.

Management of modernization processes of leading sectors of the economy is one of the components of the management system in the business entities, planning and implementation of modernization, technical and technological upgrading of all phases of production and services, oriented at the qualitative changes in the production process and social environment. From this point of view, all the measures taken in our country in this direction are essentially innovative. They are based on advanced techniques and technologies, covering the economic, manufacturing, and sales capacities of enterprises. The promotion of modernization processes implies the harmonization of the technical and investment policies of any enterprise. It also aims to produce new types of products and expand their range.

As a result of the consistent policy of modernization of leading sectors of the economy, the qualitative and progressive shifts in the structure of the economy are taking place. Thus, the share of industrial production in GDP in 2000 was 14% in 2000, reaching 25.6% in 2016.

In the same period, the share of transport and communication sectors in GDP increased from 8% to 11.4%. These achievements in both areas have resulted in the reduction of the tax burden, the priority investment in these sectors, and the successful implementation of major investment projects. At the same time, the volumes of industrial production continued to grow at a steady pace.

Uzbekistan has consistently pursued its development model and ensured macroeconomic stability in the shortest time of the former Soviet Union, in particular in the mid-1990s, preventing the economic downturn. Then he began to solve some of the major problems of the changing of the structure of the economy. It was not good enough. In 1996-2003, our national economy developed at an annual average rate of 4 per cent.

Thanks to the deepening of economic reforms aimed at creating a favorable business environment, modernization, technical and technological renewal of production, the economy of our country has been experiencing a high and stable growth rate of 7-9% per annum.

During the years of independence the development potential of the industrial sector and services has been further expanded. As a result, a gradual decline in the share of agriculture in GDP (from 32.4% in 1995 to 17.6% in 2016) persisted. More importantly, this decrease was driven by the positive average annual growth rates of agricultural production.

Diversification, modernization, technical and technological modernization of the industrial sector contributed to the growth of the total volume of production in the industry and the share of industry (including construction) in the GDP within the period 1995-2016 from 27.8% to 32.9%.

It is well known that the development of the services sector is one of the most important factors of the economy, employment and growth of the population's income. As a result of large-scale work on reforming the sphere of services, this sector has soon become the fastest growing sector of the economy. Its share in GDP in 1995-2016 increased from 39.8 percent to 49.5 percent.

Today, the term "modernization" is widely used in various fields of our national economy. It is in harmony with the concepts such as "innovation", "development" that describe positive changes. Modernization of the economy is related to such concepts as "economy of knowledge", "diversification of the economy", "innovative economy" and "globalization of economy".

Consequently, modernization of the economy should mean structural, technological and institutional changes aimed at increasing the international competitiveness of the national economy. The world experience shows that modernization is carried out simultaneously with the use of national resources and foreign investment in the country and the use of new knowledge and technologies. If the country's technological and institutional innovations are internationally recognized and disseminated, modernization will have a creative character. It can bring a certain amount of revenue to the country as rent, royalty.

Expansion and incentives for innovation, the formation of an innovative economy, "knowledge economy" are among the priorities of the national economy development. The world experience shows that many methods and the positive results of the structural modernization of the national economy are known. Two of them can be distinguished as the main modern directions:

• -    modernization and development of education, science and innovation in accordance with the requirements of "knowledge economy";

• -    comprehensive support for entrepreneurship activities, especially innovative activities.

The following challenges facing the domestic producers in the context of market economy require the modernization of the economy:

• -    Fixed assets are outdated;

• -    Production equipment has expired and is morally outdated;

• -    Implementation of inefficient technologies;

• -    Lack of qualified personnel in priority sectors;

• -    Manufacture of non-competitive products.

In modernization programs that have been put into practice in order to find a solution to these problems, the focus should be focused on a number of tasks at the national economy level.

In the future, in the management of modernization processes in the leading sectors of the economy, it is desirable to introduce the following mechanisms:

Firstly, to develop or create a single system for managing modernization processes at these enterprises;

Second, introduce the principles and principles for the management of modernization processes in general management of industrial enterprises;

Third, strict control over the installation and commissioning of the equipment for modernization, technical and technological upgrading of enterprises;

Fourthly, strengthening the management role of competent entities on continuous audit and monitoring of enterprises with a high share of equipment that is morally and physically obsolete;

Fifthly, the development and introduction of a system for evaluating the effectiveness of modernization processes in enterprises of leading sectors of the economy.

From the above-mentioned opinions, it is possible to conclude that the modernization, technical and technological renewal of the leading sectors of the economy is accelerating. In such a situation, improving the management of the current affairs system and the consistent application of them in practice will ensure the achievement of the international competitiveness of our national economy.