The role of structural changes in the modernization of the economy

Theoretical bases of economics and management

In order to increase the competitiveness of the national economy, it is necessary to modernize and diversify the branches of the real sector. At the same time, the process of diversification and modernization of the economy and the structural transformation will be accompanied by a parallel interconnection. Ultimately, these two interconnected processes ensure transition to innovative development. In the country with innovative development, the export potential will be increased and sustainable economic growth will be ensured through the production of high value-added products. This, in turn, increases the national wealth and ensures the competitiveness of the national economy. The competitiveness of the national economy guarantees the welfare of the population. Through the implementation of the national economy modernization and structural transformation program in the world practice, many developed countries have ensured sustainable economic growth based on innovative factors. In this regard, Japan, Germany, the Republic of Korea and the People’s Republic of China have achieved steady economic growth thanks to the deep structural transformation of the economy on the basis of economic modernization strategies. Modernization includes the technical and technological renewal of the leading sectors of the economy, the qualitative improvement, and ultimately, diversification of production, as well as the development of human factor. In the context of modernization of the national economy, it is crucial to form a state-of-the-art innovation program, to prepare a new generation of personnel effectively using innovations and investments and preparing a new class of investors. For this purpose, Uzbekistan needs a national idea for national technological development and domestic market modernization. This program should allow Uzbekistan to facilitate its inclusion into the list of the world’s most developed countries. From this point of view, the formation of an innovation program, training of the new generation, effectively using innovations and investments, support for the development of a class of owners, become important. This requires a well-thought-out program for the technological development of Uzbekistan and the modernization of the domestic market. The implementation of this program should create new opportunities for Uzbekistan to find a worthy place in the ranks of the developed countries. In achieving these long-term strategic goals, the modernization of the national economy and the implementation of structural transformations play a leading role. The Strategy of Actions for the Development of the Republic of Uzbekistan for 2017–2021 has highlighted that “enhancing its competitiveness through deepening structural transformation, modernization and diversification of leading sectors of the national economy” is a priority.